Govt Unveils Textile Policy 2024 to Foster Growth and Offer Incentives

The policy emphasises two primary areas; technical textiles, including clothing and apparel, and various manufacturing processes such as weaving and dyeing.

India has launched its Textile Policy for 2024, which aims to strengthen the textile sector by offering a range of financial incentives.

The policy emphasises two primary areas; technical textiles, including clothing and apparel, and various manufacturing processes such as weaving and dyeing.

It includes several financial support mechanisms for businesses, which consist of capital subsidies between 10 per cent and 35 per cent of eligible fixed capital investments, capped at Rs 1 billion based on taluka and activity.

The policy also provides credit-linked interest subsidies ranging from 5 per cent to 7 per cent for a duration of 5 to 8 years, with an annual limit of 2 per cent to 3 per cent. Companies can receive Rs 1 per unit of electricity for 5 years, applicable to DISCOMs or renewable energy sources.

Wage assistance will be available for employees, with support ranging from Rs 3,000 to Rs 5,000 per month for women and Rs 2,000 to Rs 4,000 for men, depending on their roles. Additionally, members of self-help groups (SHGs) will receive Rs 5,000 per month for training over 3 months and payroll support of up to 25 per cent of job work turnover for 5 years.

The policy also outlines measures for quality certification, energy and water conservation savings, and support for technology acquisition. The Textile Policy 2024 places significant emphasis on labour-intensive units, defined as new industrial units employing at least 4,000 registered individuals under the Employee Provident Fund (EPF) scheme, including a minimum of 1,000 women.

These units are eligible for capital subsidies ranging from 25 per cent to 35 per cent, capped at Rs 1.50 billion, as well as credit-linked interest subsidies of 7 per cent to 8 per cent for up to 8 years, with an annual limit of 3 per cent.

Furthermore, they will benefit from electricity tariff subsidies with a maximum annual limit of Rs 150 million for group captive renewable energy sources.

Wage assistance for female employees will range from Rs 3,000 to Rs 5,000, while male employees will receive support of Rs 2,000 to Rs 4,000 per month for a decade.

Self-help groups (SHGs) will also receive similar financial support. Overall, the policy aims to strengthen India’s textile industry, promote employment—especially among women—and enhance competitiveness through various financial aids and technological support.