TRADE PREPAREDNESS AND EXPORT COMPETITIVENESS OF TEXTILE SECTOR

Key Highlights:

• India's textiles and apparel exports, including handicrafts, reached ₹3,25,339 crore in 2025–26, marking a 1.8% growth.
• Key government initiatives include PM Mega Integrated Textile Regions and Apparel Parks Scheme (PM MITRA), Production Linked Incentive Scheme for Textiles, National Technical Textiles Mission, and SAMARTH - Scheme for Capacity Building in the Textile Sector.
• The Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme has been extended until September 30, 2026.
• Temporary customs duty exemptions were provided on cotton and key inputs in the man-made fibre (MMF) value chain.
• The Rebate of State and Central Taxes and Levies (RoSCTL) Scheme for garments and made-ups was extended until September 30, 2026.
• A focused export-promotion and market-diversification strategy covers 40 priority countries, leveraging 16 existing Free Trade Agreements (FTAs).
• Six Textile Export Facilitation Centres (TEFCs) have been established, and the Bharat Tex global mega textiles event was held in July 2026.

Detailed Insights:

• Export growth was recorded in over 100 countries, demonstrating broad market reach for Indian textiles.
• Government schemes aim to strengthen global competitiveness and export preparedness of the textile and apparel sector.
• Customs duty exemptions on cotton and MMF inputs were implemented to reduce costs and enhance the sector's competitiveness.
• Rationalisation of GST rates addressed the inverted duty structure in the MMF value chain.
• The Resilience & Logistics Intervention for Export Facilitation (RELIEF) initiative supports exporters affected by geopolitical disruptions in West Asia.
• The extension of RoDTEP and RoSCTL schemes ensures policy predictability and stability for exporters.
• FTAs with countries like the UK (CETA) and New Zealand, and concluded negotiations with the EU, offer significant market access opportunities.
• The India Immersive Experience Programme, through the National Institute of Fashion Technology, showcases India's textile and design ecosystem internationally.
• The Textiles Summit in June 2026 fostered collaborative dialogue among state governments, industry, and academia for sector growth.
• A district-led approach, focusing on 100 champion and 100 aspirational Textile Districts, facilitates improved planning and implementation support.
• Bharat Tex showcased India's entire textile value chain, fostering global business partnerships and positioning India as a leading manufacturing hub.
• These measures collectively aim to diversify export markets, strengthen supply-chain resilience, improve market access, and enhance competitiveness, particularly for MSMEs.

Key Concepts Involved:

• PM Mega Integrated Textile Regions and Apparel Parks (PM MITRA) Scheme: Aims to create world-class infrastructure for the textile industry, attracting investment and boosting employment.
• Production Linked Incentive (PLI) Scheme: Provides incentives on incremental sales from products manufactured in India to boost domestic manufacturing.
• National Technical Textiles Mission: Promotes research, development, and market penetration of technical textiles in India.
• Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme: Refunds embedded central, state, and local duties/taxes that are not rebated under other schemes.
• Rebate of State and Central Taxes and Levies (RoSCTL) Scheme: Provides rebate of embedded taxes and levies for export of garments and made-ups to enhance competitiveness.
• Free Trade Agreement (FTA): A pact between two or more countries to reduce barriers to imports and exports among them.