**Executive Summary**
This report outlines the various schemes and initiatives implemented by the Ministry of Textiles to boost the Indian textile and apparel sector, including handicrafts. It highlights the positive impact of the India-Australia and India-UAE trade agreements on textile exports. It also mentions the government's support for sustainable practices and the approval of a scheme with an outlay of Rs.275 crore to complete ongoing projects.
**Key Points / Main Content**
* **Trade Agreements:**
* The India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) eliminated tariffs on all Australian products, effective 29th December 2022.
* The India-UAE Comprehensive Economic Partnership Agreement (CEPA) provides preferential market access, effective 1st May 2022.
* India's textile exports to UAE grew by 6.8% to US$ 2156.24 million in 2024-25 compared to US$ 2019.41 million in 2023-24.
* India's textile exports to Australia grew by 10.9% to US$ 732.06 million in 2024-25 compared to US$ 659.99 million in 2023-24.
* **Government Schemes and Initiatives:**
* Implementation of schemes to boost the textile and apparel sector, including the PM MITRA Parks Scheme, the Production Linked Incentive (PLI) Scheme, and the National Technical Textiles Mission.
* Implementation of SAMARTH for capacity building and Silk Samagra-2 for sericulture development.
* Implementation of National Handloom Development Program and Comprehensive Handicrafts Cluster Development Scheme for promotion of handicrafts.
* Administering RoSCTL and RoDTEP schemes for remission of taxes and duties on exported textile products.
* **Sustainable Practices:**
* Constitution of an Environmental, Social and Governance (ESG) Task Force.
* Financial assistance for promotion of natural dyes and setting up of Dye houses under the National Handloom Development Program.
* Launched India Handloom Brand (IHB) initiative for branding high-quality handloom products.
* Implementation of the Integrated Processing Development Scheme (IPDS) to support Common Effluent Treatment Plants (CETP).
* Approval of a scheme with an outlay of Rs.275 crore to complete ongoing projects.
* **Support for Artisans and Exporters:**
* Implementation of a Mega Cluster Project with an outlay of ₹20 crore for Bundelkhand, benefitting over 2,000 artisans.
* Targeted assistance and financial incentives for small exporters and weavers in backward and aspirational districts.
* Facilitation of participation in international marketing events through the Handloom Export Promotion Council.
* **Monitoring and Assessment:**
* The Ministry is monitoring India's export of Textile & Apparel to the United States and other countries.
* Regular consultation with exporters, including MSMEs, to assess the impact of tariffs and other challenges.
**Impact Analysis**
**Stakeholder:** Textile and Apparel Industry (including Handicrafts)
* **Impact:** Beneficiaries of government schemes, improved market access through trade agreements, and support for sustainable practices.
* **Action Required:** Engage with the ESG Task Force, participate in government schemes, and adopt sustainable production models.
**Stakeholder:** Exporters (including MSMEs)
* **Impact:** Improved export opportunities through trade agreements and facilitation in international marketing events.
* **Action Required:** Participate in trade events, leverage government incentives, and provide feedback to the Ministry regarding challenges faced in exporting.
**Stakeholder:** Weavers and Artisans (particularly in Bundelkhand and backward/aspirational districts)
* **Impact:** Financial assistance, dedicated support mechanisms, and improved access to global value chains.
* **Action Required:** Participate in Mega Cluster projects, apply for financial incentives, and engage with support mechanisms provided by the government.
Key Entities Referenced
Ministry of Textiles: The primary entity implementing various schemes and initiatives to boost the Indian textile and apparel sector.
India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA): A trade agreement where Australia eliminated tariffs on all products.
India–UAE (United Arab Emirates) CEPA (Comprehensive Economic Partnership Agreement): A trade agreement providing preferential market access to majority of lines.
National Handloom Development Program: A scheme providing financial assistance for promotion of natural/vegetable dyes and setting up of Dye houses.
Bundelkhand: A region mentioned for exhibiting growth in global textile and apparel and where the Government is implementing a Mega Cluster Project.
Ministry of Textiles
TRADITIONAL TEXTILES UNITS
Posted On: 10 FEB 2026 1:50PM by PIB Delhi
The India—Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA), where Australia
eliminated its tariffs on all products, came into effect on 29th December 2022. The India–UAE (United
Arab Emirates) CEPA (Comprehensive Economic Partnership Agreement), implemented from 1st May
2022 provides preferential market access to majority of lines. India’s textile & Apparel including
Handicrafts exports to UAE stood at US$ 2156.24 million in 2024-25 exhibiting a growth of 6.8%
compared to US$ 2019.41 million in 2023-24 and India’s textile & Apparel including Handicrafts exports
to Australia stood at US$ 732.06 million in 2024-25 exhibiting a growth of 10.9% compared to US$
659.99 million in 2023-24. Bundelkhand area, including Jhansi and Lalitpur districts, has exhibited
growth in global textile and apparel, including handicrafts in the said period.
The Government is implementing various schemes/initiatives to boost the Indian textile and apparel
sector and enhance its competitiveness from Country. The major schemes/initiatives include PM Mega
Integrated Textile Regions and Apparel (PM MITRA) Parks Scheme to create a modern, integrated,
world class textile infrastructure; Production Linked Incentive (PLI) Scheme focusing on manmade fibre
(MMF) Fabric, MMF Apparel and Technical Textiles to boost large scale manufacturing and enhancing
competitiveness; National Technical Textiles Mission focusing on Research Innovation & Development,
Promotion and Market Development; SAMARTH – Scheme for Capacity Building in Textile Sector with
the objective providing demand driven, placement oriented, skilling program; Silk Samagra-2 for
comprehensive development of sericulture value chain; National Handloom Development Program for
end to end support for handloom sector. Ministry of Textiles is also implementing National Handicrafts
Development Programme and Comprehensive Handicrafts Cluster Development Scheme for promotion
of handicrafts. The Government is also administering the two remission schemes of Rebate of State and
Central Taxes and Levies (RoSCTL) for Apparel/Garments and Made-ups and the Remissions of Duties
and Taxes on Exported Products (RoDTEP) Scheme for other textiles products.
The Ministry has constituted an Environmental, Social and Governance (ESG) Task Force to engage in
deliberations with industry stakeholders to ascertain the current status and issues being faced in adopting
sustainable production models. The Government, under the National Handloom Development Program is
providing financial assistance for promotion of natural/vegetable dyes and setting up of Dye houses. The
Government has launched India Handloom Brand (IHB) initiative for branding of high quality handloom
products with zero defects and zero effect on the environment.
In order to facilitate the textile industry to meet the required environmental standards using
environmentally friendly processing standards and technology and to support new Common Effluent
Treatment Plants (CETP)/ upgradation of CETPs in existing processing clusters as well as new processing
parks specially in the Coastal Zones, the Ministry is implementing Integrated Processing Development
Scheme (IPDS) since 12th FYP. The Ministry has further decided to continue the said scheme with some
modifications. The PIB has approved the scheme to complete ongoing projects with an outlay of Rs.275
crore.The Government is implementing a Mega Cluster Project with an approximate outlay of ₹20 crore to
benefit clusters including Bundelkhand region. The project spans over all 07 districts of Bundelkhand,
benefitting more than 2,000 artisans. The Government is also providing targeted assistance, financial
incentives, and dedicated hand-holding mechanisms to support small exporters and weavers in backward
and aspirational districts for their effective integration into global value chains under various free trade
agreements (FTAs). For export promotion of handlooms, participation of handloom exporters/ weavers of
pan India including small exporters, weavers of backward and aspirational district are facilitated in various
International marketing events/ fairs, India International Trade Fair Buyer Seller Meet, Reverse Buyer
Seller Meet, Big Ticket events, Bharat Tex, which are organised through Handloom Export Promotion
Council.
The Ministry is monitoring India’s export of Textile & Apparel including Handicrafts to United States and
other countries in the world. The Ministry is in regular consultation with exporters including micro, small
and medium enterprises (MSMEs) to assess the impact of US tariff on India’s textiles & apparel export
and other challenges. During January–December 2025, India’s overall exports of Textiles & Apparel
(including handicrafts) to the world stood at US$ 37.6 billion, thereby exhibiting resilience by the sector
amidst global challenges.
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.
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