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India continues to rank among the world's leading textile-exporting nations, holding a 4% share in global textiles and apparel exports.
According to a written reply in Lok Sabha by the Ministry of Textiles on Friday, textile and apparel exports, including handicrafts, grew by 7% from April to December 2024 compared to the same period the previous year. The USA, European Union, and UK remained key markets, accounting for 53% of total exports during FY 2023-24.
To further boost the sector, the government has launched several initiatives, including the PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks Scheme, aimed at developing world-class textile infrastructure. The Production Linked Incentive (PLI) Scheme, focusing on MMF fabric, apparel, and technical textiles, seeks to drive large-scale manufacturing, while the National Technical Textiles Mission promotes research and market expansion. The SAMARTH program continues to provide skill development for job-oriented training in the industry.
India’s textile sector benefits from a strong raw material base, including cotton, silk, wool, jute, and man-made fibres. To ensure a steady supply of cotton and encourage cultivation, the government sets a Minimum Support Price (MSP) annually. Additionally, the custom duty on Extra-Long Staple (ELS) cotton was reduced to zero from February 20, 2024, facilitating duty-free imports under the India-Australia Economic Cooperation and Trade Agreement (ECTA).
With 14 Free Trade Agreements (FTAs), including deals with the UAE, Australia, and EFTA, alongside six Preferential Trade Agreements (PTAs), India continues to enhance its textile export potential. Schemes like Rebate of State and Central Taxes and Levies (RoSCTL) and Remissions of Duties and Taxes on Exported Products (RoDTEP) further support the industry by ensuring competitiveness and promoting zero-rated exports.
The National Technical Textiles Mission (2020-2026) is spearheading research in specialty fibres, geotextiles, medical textiles, and biodegradable textiles using natural fibres like milkweed and bamboo. Innovation challenges led by the Ministry of Textiles, in collaboration with Startup India and DPIIT, have supported startups working on textile waste recycling and bio-based fibre production.
To protect domestic producers, the government has imposed a Minimum Import Price (MIP) of USD 3.50 per kg on certain knitted fabric categories and revised custom duties on select HSN codes in the latest budget. Additionally, Quality Control Orders (QCOs) have been implemented to curb the import of low-quality fabrics and safeguard the domestic market.
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