The Indian Government has launched the new Textile Policy 2024 to boost the sector’s growthby offering a series of financial incentives and support mechanism.

Focusing on two key areas including technical textiles, including clothing and apparel, and manufacturing processes such as weaving and dyeing, the policy offers capital subsidies in the range of 10 per cent to 35 per cent of eligible fixed capital investments, with a cap of Rs 100 crores, depending on the region and activity.

Additionally, the policy also offers edit-linked interest subsidies of 5 per cent- 7 per cent for a duration of 5 to 8 years, with an annual limit of 2 per cent to 3 per cent. Businesses will also receive Rs 1 per unit of electricity for five years, applicable to power sourced from Discoms or renewable energy.

For employees, the policy offers a wage assistance of Rs 3,000 to Rs 5,000 per month for women and Rs 2,000 to Rs 4,000 for men, based on their roles. It provides Self-help group (SHG) members with funds of Rs 5,000 per month for three months of training and payroll support of up to 25 per cent of job work turnover for five years.

The policy also addresses quality certification, energy and water conservation savings, and technological advancements by providing technology acquisition support.

A major highlight of the policy is its focus on new industrial units employing at least 4,000 registered workers under the Employee Provident Fund (EPF) scheme, with at least 1,000 of those employees being women. These units will be provided with capital subsidies of 25 per cent to 35 per cent, capped at Rs 150 crore, along with credit-linked interest subsidies of 7 per cent to 8 per cent for up to eight years, with an annual cap of 3 per cent.

Further, the policy offers incentives including electricity tariff subsidies, with a maximum annual limit of Rs 15 crore for group captive renewable energy sources. Female employees in these units will receive wage assistance in the range of Rs 3,000 to Rs 5,000 per month, while male employees will receive Rs 2,000 to Rs 4,000 for up to ten years.

To help boost employment and competitiveness in the textile sector, self-help groups (SHGs) will also receive financial support in similar categories. Overall, the Textile Policy 2024 seeks to promote employment, especially among women, and improve the industry’s competitiveness through financial incentives and technological support.