PIB+ The Hindu

GS Paper 1 (Geography - Industry) & GS Paper 3 (Economy - Industry)

Textile industry in India

Why in news:

Vice President Shri M. Venkaiah Naidu inaugurate the Virtual Platform for Apparel Products of the Apparel Export Promotion Council (AEPC) today


Upskilling the textile and apparel workers and adopting the latest technologies to gain competitiveness in exports and to capture the global market.

Issue with textile industry:

we are lagging in global fabric exports because of the small size of average firms and the use of outdated technology.

The Current share of India in global textile exports was just 6 per cent

Goal : Manufacturing of quality items and exporting them at competitive prices and exploiting the full employment and economic potential of the textile industry. And reach a double-digit share in exports of fabrics from the current 6%.

  • Tools:
  • growing the average size of the apparels firm, 
  • Adoption of  latest technologies 
  • Skilling manpower,
  • Importance of branding in adding value to apparel products.(Brand Building)

Current Picture:

  • It is the second-largest employer and provides direct employment to about 45 million people.
  • The sector can play a major role in tapping the potential of our demographic dividend. 
  • It is also a very important foreign exchange earning industry for India, contributing to about 12% in our export earnings
  • The sunrise sector of ‘technical textiles’ presents a great opportunity to the industry, there is a need that entrepreneurs should capitalize on the expanding global market, which is expected to reach USD 220 billion by 2022. 
  • India was still picking up in this ‘technical textiles’ area with about 4 per cent market share.
  • The efforts of AEPC and the Ministry of Textiles for promoting the manufacturing and export of Medical Textiles (PPE Kits, Face Shields, Masks & Gloves) during the pandemic, makes India today stands in the 2nd position in the world in the manufacturing of PPE Kits.

Role of women:

  • The increased labour force participation of women in the apparel’s sector, is  a true vehicle of social transformation in remote areas through financial empowerment of women. 
  • “Women are 50 per cent of our talent pool. If they are given proper encouragement and training, they will excel greatly”, 
  • Textile sector’s expansion could have positive outcomes for women’s education and total fertility rate too.

Apparel Export Promotion Council (AEPC)

Incorporated in 1978, AEPC is the official body of apparel exporters in India that provides invaluable assistance to Indian exporters as well as importers/international buyers who choose India as their preferred sourcing destination for garments.

AEPC's main objectives
To promote, advance, increase, develop export of all types of readymade garments, excluding, woollen knitwear and garments of leather, hemp.
2. To undertake all export promotion measures, particularly to undertake market research, provide inputs for budgets and Foreign Trade Policy, inputs for various FTAs, PTAs and Bilateral agreements, to monitor tariff and other restrictive practices of importing countries, to find out the range and export prices of garments of other countries, to develop new designs and patterns of garments, to undertake marketing in individual foreign markets, to send trade delegations and missions to foreign countries as well as to survey export potential of ready made garments country.
3. To publicize and highlight to importers and the public in foreign countries the advantages of trade and commerce with India and to create the various types of garments markets for the purpose of continuously and regularly reporting to manufacturers, traders and exporters of garments.
4. To assist members, especially, in the small scale sector by giving assistance in the matter of understanding and implementation of the drawback, rules and procedures, import license facilities provided and how to apply for the facilities.
5. To establish design centers, to evolve improved design and patterns and garments suitable for export, to improve the qualities and standards fabrics and garments by importing technical knowhow, to encourage export production of quality garments and to undertake necessary research fashions, designs and techniques and to encourage manufacture of garments for exports.
6. To undertake training of workers and technical personnel, to improve the skill of workers engaged in garment manufacturing in India and the technological base of the garment industry.
7. To obtain from members of the Council and to prepare for the council as a whole, action plans for promotion of exports, development of export markets, generation of production for exports, setting of export targets generally and in relation to specific countries and commodities on basis and for such medium and longer terms as may be considered desirable and to ensure/ undertake execution of such plans.
8. To co-operate with government and other various organizations in the country and abroad with a view to further promotion of exports of ready garments.

Amended Technology Up-gradation Fund Scheme

The new scheme specifically targets:
1. Employment generation and export by encouraging apparel and garment industry, which will provide employment to women in particular and increase India’s share inglobal exports.
2. Promotion of Technical Textiles, a sunrise sector, for export and employment
3. Promoting conversion of existing looms to better technology looms for improvement in quality and productivity
4. Encouraging better quality in processing industry and checking need for import of fabrics by the garment sector.

The amended scheme would give a boost to “Make in India” in the textiles sector; it is expected to attract investment to the tune of one lakh crore rupees, and create over 30 lakh jobs.

Office of Textile Commissioner (TXC) is being reorganised; its offices shall be set up in each state. Officers of the TXC shall be closely associated with entrepreneurs for setting up the industry, including processing proposals under the new scheme, verifying assets created jointly with the bankers and maintaining close liaison with the State Government agencies.

The implementation of the scheme would be executed and monitored online under iTUFS, launched in April, 2015.
Under the new scheme, there will be two broad categories:
- Apparel, Garment and Technical Textiles, where 15 percent subsidy would be provided on capital investment, subject to a ceiling of 30 crore rupees for entrepreneurs over a period of five years.
- Remaining sub-sectors would be eligible for subsidy at a rate of 10 percent, subject to a ceiling of Rs.20 crore on similar lines.




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