Production Linked Incentive (PLI) will get a major chunk of the outlay with ₹1,148 crore. This is followed by Integrated scheme for skill development (₹330 crore), R&D textiles (₹370 crore), National Technical Textiles Mission (₹100 crore) and Textile Cluster Development Scheme (₹100 crore).
Economic Survey 2024-25 said that India exported textile items worth $34 billion in 2023, with apparel constituting 42 per cent of the export basket ($14.6 billion), followed by raw materials/semi-finished materials at 34 per cent ($11.7 billion) and finished non-apparel goods at 30 per cent ($7.8 billion). Europe and the US consumed nearly 66 per cent of India’s apparel exports, 58 per cent of finished non-apparel goods and 12 per cent of raw materials/semi-finished materials. Other prominent destinations include the UK (8 per cent of apparel exports) and the UAE (7 per cent).
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On the increase in research and capacity building, Mithileshwar Thakur, Secretary General, Apparel Export Promotion Council, said textiles research and capacity building are the two critical areas that the textiles industry has been attempting to focus upon since long.
With a visible shift from fast fashion to sustainable and ethically produced products and increasing emphasis on adherence to global compliance norms, the research on product development acquires significance requiring support from the government. This significant increase in the budgetary allocation will fill that critical gap, he said.
The increased allocation for PLI will help India upscale its production of MMF garments, MMF fabrics and Technical Textiles, thereby aligning our product basket with the global demand and increasing our share in global exports.
The R&D in the textiles sector coupled with skill development will lead to product development and innovation and keep the Indian textile industry abreast with the global trends and be part of the global value chain. The multi-pronged initiative to strengthen all critical schemes through increased budgetary allocation will lead to convergence of right strategies to supercharge this all important sector holding key to generation of massive employment opportunities, he said.
SK Sundararaman, Chairman, The Southern India Mills’ Association, and Managing Director of Shiva Texyarn Ltd, Coimbatore, said R& D, NTTM and cluster development will yield fruit in 5-10 years by creating commercial IP. The PLI outlay is for committed investments already done to increase MMF/Technical Textiles production. Skill development is most needed to increase the availability of suitable labour in the country, he said.
Prabhu Dhamodharan, Convenor, Indian Texpreneurs Federation (ITF), Coimbatore, on the substantial increase in the outlay said, the earlier PLI scheme focused on MMF products and technical textiles. Its successful implementation and disbursement with budgetary support will motivate the sector and pave the way for a much-needed Cotton Apparel PLI scheme, aligned with emerging business opportunities.
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Investing in R&D to enhance capabilities in the MMF sector, particularly in processing, can drive much-needed technological advancements. Additionally, there is a pressing need to produce more export-oriented, high-quality MMF apparel to align with the evolving demand dynamics in global fashion markets, he told businessline.
For instance, India’s market share in the US apparel market for cotton apparel stands at double digits, while share for MMF apparel is below 3 per cent. The US imports MMF apparel worth approximately ₹3.5 lakh crore annually. To capitalise on the significant opportunities in the MMF apparel segment, we must strengthen our manufacturing ecosystem through focused product development and R&D interventions, he said.
