From April-December 2024, India's textile and apparel (T&A) exports, including handicrafts grew by 7 per cent as compared to the previous year. The primary export markets included the United States, European Union, and United Kingdom, which together absorbed 53 per cent of total exports in FY2023-24.
As a major global exporter, India commands a 4 per cent share of the T&A market. The government is actively boosting its position through strategic initiatives. The PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks Scheme is designed to establish world-class textile infrastructure, while the Production Linked Incentive (PLI) Scheme aims to stimulate large-scale manufacturing of man-made fiber (MMF) fabrics, apparel, and technical textiles.
Other key programs include the National Technical Textiles Mission, which emphasizes research and market development, and SAMARTH, a capacity-building initiative focused on providing placement-oriented skills training.
India’s robust textiles industry benefits from a diverse raw material base, featuring natural fibers like cotton, silk, wool, and jute, alongside man-made alternatives. The country boasts comprehensive manufacturing capabilities across the entire value chain, from fiber production to finished garments.
To ensure a stable cotton supply and support farmers, the government sets an annual Minimum Support Price (MSP). This mechanism protects farmers from market price fluctuations and guarantees cotton availability at competitive rates. Additionally, the customs duty on Extra-Long Staple (ELS) cotton was eliminated from February 20, 2024, facilitating 51,000 tons of duty-free imports under the India-Australia Economic Cooperation and Trade Agreement (ECTA).
India has also expanded its trade network by signing 14 Free Trade Agreements (FTAs) and six Preferential Trade Agreements (PTAs) to enhance export potential. The Rebate of State and Central Taxes and Levies (RoSCTL) and Remission of Duties and Taxes on Exported Products (RoDTEP) programs further boost competitiveness by promoting zero-rated exports.
Running from 2020-26, the National Technical Textiles Mission drives research into specialty fibers and application-based textiles, including geotextiles, medical textiles, and sports textiles. It also encourages the development of biodegradable textiles using unconventional natural fibers.
To foster innovation, the Ministry of Textiles conducted innovation challenges in collaboration with Startup India and the Department for Promotion of Industry and Internal Trade (DPIIT). Winners of these challenges were granted incubation opportunities and recognition for their contributions to sustainable textile solutions.
To protect domestic producers from low-quality imports, the government implemented a Minimum Import Price (MIP) of US$ 3.50 per kg for certain knitted fabrics and revised customs duties on specific Harmonized System of Nomenclature (HSN) codes. Quality Control Orders (QCOs) have also been enacted to prevent the influx of substandard goods.
