The Indian textile ministry is set to receive a marginal budget hike of 2.5% for the fiscal year 2025, raising its allocation to ₹4,500 crore, according to insiders.
The proposed budget for the upcoming year marks a ₹110 crore increase compared to the current fiscal year’s allocation of ₹4,389 crore. While the government aims to establish India as a dominant force in the global textile industry, the modest budget uptick may present challenges for the effective utilisation of funds by the ministry.
Nonetheless, this marginal increase reflects the government’s dedication to developing and promoting the textile sector, bolstering India’s international presence in the field.
The finance and textiles ministries have yet to respond to queries on the matter. Last year, the ministry received a budgetary allocation of ₹11,059.81 crore, which was subsequently raised by over 10% to ₹12,382 crore in 2022-23. However, the ministry faced a severe setback with a 71% budget cut, resulting in an outlay of ₹3,579 crore for 2022-23.
Despite this marginal rise, the progress of the Pradhan Mantri Mega Integrated Textile Region and Apparel (PM MITRA) scheme will remain unaffected, as its sanctioned outlay of ₹4,445 crore extends through 2027, according to sources.
The government is striving to position itself as an investment and sourcing hub for textiles with the PM MITRA initiative, aiming to attract investments totalling ₹70,000 crores over the next five years. Foreign direct investment (FDI) will also be actively pursued through the PM MITRA scheme and other programs.
With an industry contribution of approximately 2.3% to India’s GDP and 13% to its industrial production, the domestic apparel and textile sector plays a crucial role in generating 12% of the country’s export revenue. India currently commands a 4% share in the global textiles and apparel trade. To drive private equity investments and foster employment opportunities, the government has launched various initiatives such as the Scheme for Integrated Textile Parks and the Technology Upgradation Fund Scheme.
The ministry is also focusing on supporting the textile sector through schemes like the national handloom development program, the mill gate price scheme/yarn supply scheme, and the handloom weavers’ comprehensive welfare scheme, among others.
As part of the Samarth scheme for capacity building, the ministry has included 43 new partners and approved research and development projects, allocating $7.4 million towards them.
