Combination of exclusive brand stores and multi-brand outlets
The domestic textiles and apparel industry contributes 2.3% to India’s GDP and accounts for 13% of industrial production, and 12% of the country’s export earnings.
The textiles and apparel industry in India is the second-largest employer in the country providing employment to 45 million people. It is expected that this number will increase to 55 million by 2020.
For further details, please refer FDI Policy
Expected sector CAGR (2019-2021)
Share in India's GDP
Textile exports share in overall exports
Largest producer of cotton & jute in the world
Second largest producer of polyester, silk and fibre in the world
Second largest employment provider in India after agriculture
The textiles and apparel industry in India has strengths across the entire value chain from fiber, yarn, fabric to apparel. It is highly diversified with a wide range of segments ranging from products of traditional handloom, handicrafts, wool and silk products to the organized textile industry. The organized textile industry is characterized by the use of capital-intensive technology for mass production of textile products and includes spinning, weaving, processing, and apparel manufacturing.
The domestic textiles and apparel industry stood at $140 bn in 2018 (including handicrafts) of which $100 bn was domestically consumed while the remaining portion worth $40 bn was exported to the world market.
Further, the domestic consumption of $100 bn was divided into apparel at $74 bn, technical textiles at $19 bn and home furnishings at $7 bn. While exports comprised of textile exports at $20.5 bn apparel exports at $16.1 bn and handlooms at $3.8 bn.
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Combination of exclusive brand stores and multi-brand outlets
Medical textiles, agro-textiles, geotextiles protective clothing
Carpets, conveyor belts, fire-resistant materials
Across segments such as spinning, knitting, weaving and processing
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There are 369 technical textiles importers and 680 technical textiles exporters in India as per the latest available figures. The list of exporters and importers along with contact details, export segment & product exported is available in the website link.
TUFS benefit is available for TUFS benchmarked machinery covering the following activities:-
a) Cotton ginning and pressing.
b) Silk reeling and twisting.
c) Wool scouring, combing and carpet industry.
d) Synthetic filament yarn texturising, crimping and twisting.
f) Viscose Staple Fibre (VSF) and Viscose Filament Yarn (VFY).
g) Weaving, knitting and fabric embroidery.
h) Technical textiles including non-wovens.
i) Garment/design studio/made-up manufacturing.
j) Processing of fibres, yarns, fabrics, garments and made-ups.
k) Production activities of Jute Industry.
In order to promote and Market Handicrafts financial assistance is provided to different eligible organizations to organize/participate in domestic and international Craft Exhibitions/seminars in metropolitan cities/state capitals/places of tourist or commercial interest/other places. This will provide direct marketing platform to the handicrafts artisans/SHGs from various parts of the country. Major components under this scheme are detailed below:
1) Gandhi Shilp Bazaar/Craft Bazars.
3) Hiring of built up space in events organized by other organizations.
4) National Handicrafts Fair.
5) Craft Awareness Programme.
6) Participation in international fairs and exhibition abroad.
7) Folk Craft Festival of India/Stand Alone Shows/road shows.
8) Market studies abroad.
9) International craft exposure programme.
10) Cultural Exchange Programme.
11) Compliance, social and other welfare measures.
12) Buyer seller meet in India.
13) Buyers sellers meet abroad and reverse buyer seller meet in India.
14) Marketing workshops.
15) Workshops/seminars/symposiums/programmes organized abroad.
16) Rental for warehousing.
17) Publicity via print and electronic media.
18) Web Marketing.
The subsidies are as follows:
a) Stand alone spinning units – 2% Interest Reimbursement (IR) for new stand alone/replacement/modernization of spinning machinery.
b) For units having spinning capacity with forward integration having matching capacity in weaving/ knitting/processing/garmenting – 5% IR.
c) Weaving –
i) 6% IR and 15% capital subsidy on brand new shuttleless looms or 30% Margin Money Subsidy (MMS) on brand new shuttleless looms for powerloom sector.
ii) 2% IR or 8% MMS on second hand imported shuttleless looms with 10 years vintage and with a residual life of minimum 10 years.
iii) For 30% MMS – capital ceiling caps of RS. 5 crore and subsidy cap of Rs. 1.5 crore would be adhered to for encouraging adequate investments by the MSME sector.
d) Processing – 5% IR and 10% capital subsidy for specified processing machinery. CETP/ETP will not be considered for support under TUFS.
e) Garmenting – 5% IR and 10% capital subsidy on specified machinery for garmenting units.
f) Technical Textiles (including non-wovens) – 5% IR and 10% capital subsidy on specified machinery required in manufacture on technical textiles.
g) Handloom and silk sector – 5% IR or 30% capital subsidy on benchmarked machinery.
h) MSMEs including jute sector – 5% IR or 15% MMS– subsidy ceiling to be $ 115,384.
i) Other segments – i.e. cotton ginning and pressing, wool scouring, combing and carpet industry, synthetic filament yarn texturising, crimping and twisting, viscose staple fibre and viscose filament yarn, knitting and fabric embroidery, weaving preparatory machines, made-up manufacturing, CAD, CAM and design studio and jute industry – 5%IR
j) Investments like factory buildings, pre-operative expenses and margin money for working capital are eligible for benefit of reimbursement
Under the scheme only for apparel and handloom sector with 50% cap of total new eligible investment under RR-TUFS. Land is altogether excluded from eligible investments under TUFS. This benefit, however, shall not be available for textile units under the Scheme for Integrated Textile Park (SITP).
Research and Development scheme was introduced to conduct surveys and studies of important crafts and make in-depth analysis of specific aspects and problems of Handicrafts in order to generate useful inputs to aid policy Planning, fine tune the ongoing initiatives and to have independent evaluation of the schemes implemented by this office.
Following activities will be under taken during the 12th Plan:
i) Survey & Studies on different topics.
ii) Financial assistance for preparation of legal, para legal, standards, audits and other documentation leading to labeling/certification.
iii) Financial assistance to organizations for evolving, developing a mechanism for protecting crafts including languishing crafts, design, heritage, historical knowledge base, research and implementation of the same enabling the sector/segment to face challenges.
iv) Conducting Census of Handicraft artisans of the country.
v) Registration of Crafts under Geographical Indication Act & necessary follow up on implementation.
vi) Assisting handicrafts exporters in adoption of global standards and for bar coding including handicrafts mark for generic products.
vii) Financial assistance for taking up problems/issues relating to brand building and promotion of Indian handicrafts.
viii) Conducting of Workshops/Seminars on issues of specific nature relating to handicrafts sector.