The Indian Textiles Ministry is preparing a package of support measures for its textile industry, among them a capital subsidy to fund technology upgrades along the entire value chain, as global trade conditions grow less predictable, according to Textiles Minister Giriraj Singh.
Speaking to micro, small and medium-sized enterprises (MSMEs) at an industry conclave, Singh told attendees that Cabinet clearance should come within weeks.
He added that the proposals, expected to be signed off within one to two months, are designed to tackle a number of grievances the trade has voiced.
Subsidy for modernisation and cluster infrastructure
Textile Commissioner Vrunda Manohar Desai said that many clusters had grown without proper planning, leaving them short of basic infrastructure such as hostels and housing for workers.
Some 67 of these older clusters have been identified, and their names passed to the Department for Promotion of Industry and Internal Trade.
A separate scheme is also on the way to fund hospitals, skills centres and shared testing facilities in these clusters, she said.
The modernisation scheme is expected to offer extra support for machinery bought from Indian textile equipment makers. In some cases, Desai said, subsidies could cover as much as a quarter of the upgrade cost.
Widening the export net
With tariff uncertainty hanging over the United States, India’s biggest textile and clothing export destination, Singh said the ministry has shortlisted 40 countries where it wants to broaden shipments and secure better market access.
“India currently sells textiles and apparels to roughly 132 countries, he said, with 548 districts feeding the sector,” Business Standard reported.
Between April and August 2026, overall textile exports grew 6.94% in dollar terms, whereas apparel shipments slid 9.1%, while combined textile and apparel exports therefore edged down 0.24%.
Minister criticises lenders
Singh also complained that banks lend too little to textiles, arguing that restricted access to finance is holding back growth.
He said the ministry had told the Department of Financial Services that credit flow to the sector lags far behind other industries, calling this attitude an obstacle.
Banks’ indifference, he said, is stopping textiles from climbing to the next level.
Image courtesy: ANI
