Lok Sabha Question No. 369 (STARRED), answered on 2025-08-19
Subject: Textile Sector Contribution to GDP
Ministry: TEXTILES
Asked by: Shri S Venkatesan

## LOK SABHA STARRED QUESTION NO. *369 TO BE ANSWERED ON 19.08.2025

## TEXTILE SECTOR CONTRIBUTION TO GDP

## *369. SHRI S VENKATESAN:

Will the Minister of TEXTILES वस्त्र मंत्री be pleased to state :

- (a)  the  new  initiatives  being  taken  by  the  Government  to  boost  the  Indian  textile  and  apparel  sector's contribution to the GDP of the country;
- (b) the manner in which the Government is planning to make India a global hub for technical textiles;
- (c) the measures in place to enhance India's textile exports and compete with other countries;
- (d)  whether  the  Government  is  addressing  trade  barriers  and  ensuring  better  market  access  in  the European Union & United States, if so, the details thereof; and
- (e)  the  details  of  new  incentives  under  the  Production  Linked  Incentive  (PLI)  scheme  proposed  to  be taken by the Government for textiles?

## उत्तर

## ANSWER

## वस्त्र राज्  य मंत्री ( श्री पबित्र मार्घेररटा )

THE MINISTER OF STATE FOR TEXTILES (SHRI PABITRA MARGHERITA)

- (a) to (e):A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  THE  LOK  SABHA  STARRED  QUESTION NO.*369 FOR 19.08.2025 REGARDING TEXTILE SECTOR CONTRIBUTION TO GDP ASKED BY SHRI S VENKATESAN

(a): The  Government  is  implementing  various  schemes/initiatives  to  boost  the  Indian  textile  and apparel  sector  and  enhance  its  competitiveness.  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 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.

(b): The Government is implementing the Production Linked Incentive (PLI) Scheme for Textiles with an approved outlay of Rs 10,683 crore over a five year period, to promote production of MMF Apparel, MMF Fabrics and Products of Technical Textiles in the country to enable textile sector to achieve size and scale and to become competitive.

With a view to boost Technical Textiles in the country, National Technical Textiles Mission (NTTM) was created for a period from 2020-21 to 2025-26 with a fund outlay of Rs.1480 crore.

India's exports of technical textiles stood at INR 24,732.68 Crore in FY 2024-25. The exports grew by 15.53% over the last year.

(c)&(d): The  Government  is  continuously  monitoring  export  performance  and  taking  various measures  to  boost  exports  in  consultation  with  Textiles  Export  Promotion  Councils  and  Industry Associations.

USA  &   E.U.  are  important  markets  for  Indian   Textile  products  .  During  the  year  2024-25,  India's total Textile and Apparel export including Handicraft to USA was valued at USD 10.94  billion  whereas the export of these products to EU and UK was valued at USD 7.6 billion and USD  2.16  billion  respectively  .  The  Government  of  India  has  signed  FTA  with  UK  and  is  actively engaged in FTA negotiations with E.U.

The Government through DGFT runs Advance Authorisation Scheme to allow duty free import of input, which  is  physically  incorporated  in  export  product  .  In  order  to  boost  export  of  textiles  products,  the Government is implementing the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for Apparel/Garments and Made-ups in order to enhance competitiveness by adopting principle of zero rated exports. Further, textiles products not covered under the ROSCTL scheme are covered under Remissions of Duties and Taxes on Exported Products (RoDTEP) along with other products. In addition, Government provides financial support to various Export Promotion Councils and Trade Bodies for organising and participating in trade fairs, exhibitions, buyer-seller meets, etc at national and international levels to boost exports.

Ministry  has  supported  Export  Promotion  Councils/Associations  in  organizing  a  Global  Mega  Textile Event i.e. Bharat TEX 2025 to showcase the strength of the Indian textiles value chain, highlighting the latest  progress/  innovations  in  textile  &  fashion  Industry  and  positioning  India  as  the  most  preferred destination for sourcing and investment in textile sector.

India has signed 15 Free Trade Agreements (FTAs), including the recently signed CETA between India & UK. These FTAs aim to reduce tariff and non-tariff barriers, simplify procedures, and address structural issues to make Indian Exporters more competitive in partner markets.

(e): The Government has approved the Production Linked Incentive (PLI) Scheme for Textiles, with an approved outlay of Rs 10,683 crore over a five year period, to promote production of MMF Apparel, MMF Fabrics and Products of Technical Textiles in the country to enable Textile sector to achieve size and scale and to become competitive. The Scheme has two parts; Part-1 envisages a minimum investment of  Rs.300  crore  &  minimum turnover of Rs.600 crore per company; and Part-2 envisages  a minimum investment of Rs.100 crore & minimum turnover of Rs.200 crore per company. FY: 2022-23 and FY: 2023-24 were gestation periods under the Scheme. The performance years are from 2024-25 to 2028-29.

Under the PLI scheme, incentive will be provided to the companies on achieving the threshold investment and  threshold  turnover  and  thereafter  incremental  turnover.  Under  Scheme  Part-1,  15%  incentive  is provided on attaining required turnover in year 1. Under Scheme Part-2, 11% incentive is provided on attaining required turnover in year 1.

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