India continues to rank among the top textile-exporting nations, holding a 4% share in global textiles and apparel exports. In a written reply to a question in Lok Sabha on Friday, the Ministry of Textiles reported a 7% increase in textile and apparel exports, including handicrafts, from April to December 2024, compared to the same period the previous year. Key export markets for Indian textiles—namely the USA, European Union, and UK—accounted for 53% of total exports during FY 2023-24.
To strengthen India’s position in the global textile market, the government has introduced several key initiatives. Among them is the PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks Scheme, aimed at building world-class textile infrastructure. The Production Linked Incentive (PLI) Scheme, focusing on MMF fabric, apparel, and technical textiles, seeks to boost large-scale manufacturing. Other efforts include the National Technical Textiles Mission, which emphasizes research and market development, and SAMARTH, a capacity-building program designed to provide placement-oriented skilling in the textile sector.
The Indian textiles industry, one of the largest in the world, boasts a robust raw material base comprising natural fibres like cotton, silk, wool, and jute, alongside man-made fibres. The country has comprehensive manufacturing capabilities across the value chain, from fibre to finished garments.
To ensure the steady supply of cotton and encourage its cultivation, the Indian government sets a Minimum Support Price (MSP) for cotton annually. This mechanism protects farmers when market prices fall below MSP rates and ensures cotton availability at competitive prices. Additionally, the custom duty on Extra-Long Staple (ELS) cotton was reduced to zero from February 20, 2024, allowing 51,000 tonnes of duty-free ELS cotton imports under the India-Australia Economic Cooperation and Trade Agreement (ECTA) since December 2022.
India has also signed 14 Free Trade Agreements (FTAs), including deals with the UAE, Australia, and the European Free Trade Association (EFTA), and six Preferential Trade Agreements (PTAs) to enhance its export potential. The Rebate of State and Central Taxes and Levies (RoSCTL) scheme and the Remissions of Duties and Taxes on Exported Products (RoDTEP) program further support the industry by enhancing competitiveness and promoting zero-rated exports.
The National Technical Textiles Mission, launched for the period 2020-2026, focuses on cutting-edge research in specialty fibres and application-based textiles such as geotextiles, medical textiles, and sports textiles. The mission also promotes research into biodegradable textiles using unconventional natural fibres like milkweed and bamboo.
As part of the government’s drive for innovation, the Ministry of Textiles conducted various innovation challenges in collaboration with Startup India and the Department for Promotion of Industry and Internal Trade (DPIIT). Winners of these challenges were awarded incubation opportunities and recognition for their contributions to sustainable textile solutions, such as textile waste recycling and bio-based fiber production.
To curb the import of low-quality knitted fabrics, the government imposed a Minimum Import Price (MIP) of USD 3.50 per kilogram on relevant Harmonized System of Nomenclature (HSN) codes. In the latest budget, the custom duty on certain HSN codes was also revised. Moreover, various Quality Control Orders (QCOs) have been implemented to safeguard domestic producers from the influx of substandard goods.
