Rajasthan Cabinet approves textile policy, adds garment manufacturing

The Rajasthan government aims to establish the state as a global textile manufacturing hub.

The Rajasthan Cabinet, chaired by Bhajanlal Sharma, Chief Minister, has approved a new textile and apparel policy aimed at boosting the state’s textile industry. With an expected investment of over Rs 400 billion, the policy is set to enhance the state’s textile production capacity and create significant job opportunities. This strategy includes garment manufacturing for the first time, with the goal of attracting Rs 100 billion in investments and generating employment for 2 lakh people over the next five years.

The policy continues to prioritise traditional handloom and textile handicrafts but also emphasises the growing demand for technical textiles. It includes provisions for research and development incentives aimed at producing high-performance textiles for specialised applications.

The initiative also focuses on developing greenfield private industrial parks for textile and apparel manufacturing, with incentives under the Rajasthan Private Industrial Park Scheme 2025. Financial benefits such as exemptions, reduced land prices, and reimbursements will be provided through the Rajasthan Investment Promotion Scheme to support this growth.

The Rajasthan government aims to establish the state as a global textile manufacturing hub. As part of the policy, the logistics sector has been granted industry status, with an emphasis on strengthening logistics infrastructure, improving multi-modal connectivity, and attracting private investment.

Additionally, the Rajasthan State Industrial Development and Investment Corporation (RIICO) will allocate land in new industrial zones for logistics operations. The state government is also considering a plan to regularise existing warehouses, further enhancing sector efficiency.