Combination of exclusive brand stores and multi-brand outlets
Domestic Textile and apparel industry contributes 2% to India’s GDP and accounts for 10% of industrial production, 27% of the country’s foreign exchange inflows and 11% of the country’s export earnings. The Textiles & garments industry in India that employs 45 mn people in India is the second only to the agriculture sector in terms of employment.
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 & fibre in the world
Second largest employment provider in India
The Textile & garments industry in India 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, apparel, and garment.
The domestic Textile & Garments industry stood at $ 140 bn in 2018. Out of $ 140 bn, textile worth $ 100 bn was domestically consumed while the remaining portion worth $ 40 was exported to the world market.
Further, the domestic consumption of $ 100 bn was divided into household consumption at $ 81 bn and the technical textiles at $ 19 bn. While exports comprised of textile exports at $ 22 bn and apparel exports at $ 18 bn.
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Combination of exclusive brand stores and multi-brand outlets
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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.
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).
An exemption certificate is issued to enable quota/duty free entry of the eligible items of Handloom origin at the importing end. GSP certificates (Form A) is issued for the eligible items for the following tariff preference giving (donor) countries:
Australia, Canada, Japan, New Zealand, Norway, Switzerland, Turkey, United States of America (USA), Republic of Belarus, Russian Federation, and European Union.
The European Union includes 28 countries Viz. Austria, Belgium,Czech Republic, Croatia, Cyprus, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands (Holland), Republic of Bulgaria, Romania, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden and United Kingdom (UK).
1) For Australia, the main requirement is exporter’s declaration on the normal commercial invoice. Form A accompanied by the normal commercial invoice is an acceptable alternative, but official certification is not required.
2) In case of Canada and New Zealand, Official Certification is not required.
3) The United States does not require GSP Form A. A declaration setting forth all pertinent detailed information concerning the production or manufacture of the merchandise is considered sufficient only if requested by the district collector of the Customs.
The Ministry of Textile through the Textile committee provides information on the various schemes available for the textile sector. The schemes are aimed at providing wholistic benefits and growth opportunities to this sector. These schemes are:
1) Handloom mark.
2) Star rating of ginning and pressing factories.
3) Cluster development programme.
4) Integrated Skill Development Scheme.