India Strengthens Position As Global Textile Exporter With Policy Push & Trade Deals

India has cemented its place among the leading textile-exporting nations, holding a 4% share in global textiles and apparel exports, the government informed Parliament on Friday.

Exports in textiles and apparel – including handicrafts – rose 7% between April and December 2024 compared to the same period in the previous year.

The United States, European Union, and the United Kingdom accounted for 53% of India’s textile exports in FY 2023-24, Minister of State for Textiles Pabitra Margherita stated in a written reply in the Lok Sabha.

To support the sector, the government has rolled out multiple schemes.

These include the PM MITRA Parks Scheme for modern textile infrastructure, the Production Linked Incentive (PLI) Scheme focused on synthetic and technical textiles, and the National Technical Textiles Mission aimed at innovation and market expansion.

Skilling efforts are being driven under the SAMARTH program, which provides training aligned with industry needs.

Initiatives like Silk Samagra-2, designed to improve the sericulture ecosystem, and the National Handloom Development Programme have also contributed to boosting textile exports.

For handicrafts, the Ministry of Textiles is implementing the National Handicrafts Development Programme and the Comprehensive Handicrafts Cluster Development Scheme, targeting artisan development and market promotion.

India’s Textile Industry: A Complete Value Chain

India’s textile industry, one of the world’s largest, benefits from a vast resource base of both natural and manmade fibres.

The country has manufacturing capabilities spanning the entire value chain – from raw fibre to finished garments.

To ensure a stable cotton supply and protect farmer interests, the government announces a Minimum Support Price (MSP) for cotton annually.

This price cushion safeguards farmers in case market rates dip below the MSP and helps ensure cotton availability at competitive prices.

The government has also scrapped customs duty on Extra-Long Staple (ELS) cotton as of 20 February 2024.

Under the India-Australia Economic Cooperation and Trade Agreement (ECTA), India can now import 51,000 tonnes of duty-free ELS cotton.

Expanding Global Market Access For Textiles

In efforts to widen market access, India has signed 14 Free Trade Agreements, including with the UAE, Australia, and recently with EFTA countries – Switzerland, Iceland, Norway, and Liechtenstein.

Six Preferential Trade Agreements are also in place with other trading partners.

To support exporters, the RoSCTL scheme ensures zero-rating of taxes on apparel exports.

For textile goods outside RoSCTL’s scope, the RoDTEP scheme applies, covering other taxes and duties on exports.

Additionally, the government funds Export Promotion Councils and trade associations through the Market Access Initiative Scheme to help Indian exporters participate in trade events and connect with global buyers, the minister said.

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