Vital Stats

  • world’s largest cultivator of cotton by acreage
  • largest producer of jute
  • 2nd largest producer of silk & cotton
  • 2nd major global hub in man made fibres
  • 2nd largest producer of polyester & viscose fibres
  • 6th largest global exporter of textiles & apparel

Key announcements in Budget 2026-27 for textile sector

  • Integrated Programme for Textile Sector
    • National Fibre Scheme
    • Textile Expansion and Employment Scheme
    • National Handloom & Handicrafts Programme
    • Samarth 2.0
  • Mega Textile Parks and Technical Textiles
  • Mahatma Gandhi Gram Swaraj Initiative:
    • to strengthen Khadi, Handloom, handicrafts sector
  • Export promotion Measures
  • Liquidity support for MSME thru TReDS
  • SME Growth Fund of Rs.10,000Cr

Other existing Govt Initiatives for Textile

  • PLI for textile
  • PM MITRA
  • Amended Technology Upgradation & Fund Scheme
  • National Technical Textiles Mission
  • Textile Cluster Development Scheme
  • Tex-RAMPS
  • Silk Samagra Scheme

Challenges with Textile Industry

  • raw material constraints
    • poor cotton quality
    • climate hit yield
    • import dependence for synthetic fibres
  • global competition, eg. Bangladesh, Vietnam, dumping of cheap man made fibre fabrics from china
  • Geopolitical challenges eg. 50% US tariff on Indian goods
  • lack of automation, leading to error and reduced productivity
  • skill shortage, 90% weaving is unorganized sector
  • complex regulatory framework

Way forward for textile sector

  • adopt advanced automation
    • AI, RFID, demand forecasting
  • invest in infra, R&D - textile parks, Plug & play infra
  • focus on technical textiles for high value growth
  • boost domestic MMF
  • enhance cotton supply chain
  • leverage FTA to gain ero duty access to major intl markets
  • upskill workforce
  • Empower traditional Artisans
  • Sustainability linked finance

Handlooms

support millions of livelihoods, esp. rural, but has :

  • declining returns
  • fragmented markets
  • tech challenges
  • loss of traditional skills

Significance of handloom

  • associated with self reliance, national identity (swadeshi mvmt)
  • 35L weaver employment across 31L household
    • 70% workforce women
  • imp src of non-farm rural employment
  • intangible cultural heritage
    • local designs, techniques, motifs
    • community knowledge

Whats being done?

  • National Handloom Development Program
    • skill development
    • design innovation
    • branding
    • technology
    • market access
  • way forward:
    • handloom policy should go beyond mere preservation of traditional craft
    • it should be transformed to an economically aspirational field
    • greater access to design innovation, e-commerce, affordable credit, branding, GI protection, D2C market
    • digital documentation of traditional knowledge for easy transmission to new weavers