**Policy Summary: Support for Clean Tech Manufacturing in Textiles and Handicrafts**
This policy, announced on August 19, 2025, by the Ministry of Textiles, outlines measures in the Union Budget 2025-26 to support manufacturing in the textiles and traditional sectors, with a focus on handicraft artisans, including those from SC, ST, and OBC communities. Key initiatives include:
1. **Promotion of Domestic Technical Textile Production:** Two additional types of shuttleless looms have been added to the list of fully exempted textile machinery to promote domestic production of technical textiles (agrotextiles, medical textiles, and geotextiles) at competitive prices. The Basic Customs Duty (BCD) rate on knitted fabrics covered by nine tariff lines has been revised from 10% or 20% to 20% or ₹115 per kg, whichever is higher.
2. **Export Promotion of Handicraft Goods:** The time period for exporting handicrafts has been extended from six months to one year, with a possible extension of another three months. Nine items have been added to the list of duty-free inputs. The duration for exporting handicrafts manufactured from duty-free inputs by bonafide exporters has also been increased from 6 months to 1 year, with a possible 3-month extension.
3. **Mission for Cotton Productivity:** A 5-year mission will facilitate improvements in the productivity and sustainability of cotton farming and promote extra-long staple cotton varieties.
The Ministry will integrate evidence-based inclusion metrics and policies while implementing various schemes such as SAMARTH, National Handicrafts Development Programme (NHDP), and National Handloom Development Programme (NHDP).
This information was provided by the Minister of State for Textiles, Shri Pabitra Margherita, in a written reply to question Q4308 in Lok Sabha. Release ID: 2157863.
Key Entities Referenced
Ministry of Textiles: The Indian government ministry responsible for the formulation of policy and coordination of textile industry.
Union Budget 2025-26: The annual financial statement presented to the Parliament of India, outlining the government's proposed revenues and expenditures for the fiscal year 2025-2026.
SC, ST, and OBC: Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC) - categories of historically disadvantaged groups in India.
Agrotextiles: Technical textiles used in agriculture.
Medical Textiles: Technical textiles used in medical and healthcare applications.
Geo Textiles: Technical textiles used in civil engineering applications.
National Handicrafts Development Programme NHDP: A government initiative aimed at promoting and developing the handicrafts sector in India.
Lok Sabha: The lower house of the Parliament of India.
Ministry of Textiles
SUPPORT CLEAN TECH MANUFACTURING
Posted On: 19 AUG 2025 2:42PM by PIB Delhi
The government has introduced some of the measures including following in the union Budget 2025-26 to
support manufacturing in textiles and traditional sector like handicraft including SC, ST, and OBC artisans:
1. To promote domestic production of technical textile products such as agro-textiles, medical textiles and
geo textiles at competitive prices, addition of two more types of shuttle-less looms to the list of fully
exempted textile machinery has been made. The BCD rate on knitted fabrics covered by nine tariff lines
from “10% or 20%” to “20% or ` 115 per kg, whichever is higher” is also introduced
2. Export Promotion of Handicraft Goods: To facilitate exports of handicrafts, the time period for
export has been extended from six months to one year, further extendable by another three months, if
required. Nine items to the list of duty-free inputs have also been added. The duration for export of
handicrafts manufactured from duty free inputs by bonafide exporters increased from 6 months to 1
year, further extendable by 3 months.
3. Mission for Cotton Productivity: The 5-year mission aims to facilitate significant improvements in
productivity and sustainability of cotton farming, and promote extra-long staple cotton varieties.
The Ministry integrate evidence-based inclusion metrics and policies while implementing various
schemes namely SAMARTH, National Handicrafts Development Programme (NHDP), National
Handloom Development Programme (NHDP) etc.
This information was provided by THE MINISTER OF STATE FOR TEXTILES SHRI PABITRA
MARGHERITA in a written reply to a question in Lok Sabha today.
***
MAM/SMP/NM
(Lok Sabha US Q4308)
(Release ID: 2157863)