The Textile Industry Part V

Government Policies


The Indian Textile Industry is looked upon as one of the largest industries in the world. The Ministry of Textiles in India has introduced several policies and schemes targeting the growth of this sector. Some of them listed here include:

Insight into Indias National Textile Policy

The National Textile Policy was devised bearing in mind the following objectives:

Boost the growth of the textile industry in India and nurture and fix its position in the global arena as a leading manufacturer and exporter of clothing.

To cut down imports of the domestic market.

To infuse competitive spirit by liberalizing stringent controls

Promoting Foreign Direct Investment and R&D in this sector

Focus on diversification and up gradation taking into account the environmental concerns.

Evolvement of a firm multi-fibre base; and developing the skills of the weavers and the craftsmen in the process.

The goals set to meet the following targets:

The Technology Up gradation Fund Scheme should be executed in a focused manner.

The garment industry should be eliminated from the list of the small scale industry sector.

The handloom industry should be prompted to flex its muscles and embark into foreign ventures to compete globally. The National Textile Policy is also working towards streamlining the availability and the productivity of quality raw materials. Due care is being taken to control the unstable prices. Special measures are being undertaken to raise the level of Indian silk to the International Standards.


To know the purpose of the industry and to cater to peoples most basic requirements and promote sustained growth and thereby enhance the quality of living.

To recognize textile industry as an independent industry, from manufacturing raw materials to delivery of finished products, and its significant contribution to the economy as a whole.

To appreciate its vast potential for generating employment opportunities in noteworthy sectors like agriculture, organized sector, urban and rural areas, decentralized sector especially for women and differently abled.

To identify with the Textile Policy of 1985 which saw annual growth rate climb by 7.13 percent, textile exports by 13.32 percent and per capita availability of fabrics by 3.6 percent.

To evaluate the issues and problems confronted by the textile industry and strategies outlined by experts for this specific purpose.

To manufacture good quality clothing and cater to the demands of the people with reasonable prices.

Important areas

The government of India in an endeavor to promote textile industry laid emphasis on several areas, which are mentioned below:

Pioneering Marketing Strategies
Improvisation in technology
Alteration in Products
Quality Consciousness
Improvement in the quality of raw materials
Increase in productivity
Increase in exports
Finance Planning
Generation of Employment Opportunities
Human Resource Development

Pioneering Efforts

Government of India has laid down certain targets thatll help build and promote textile industry of India. To attain the aforesaid targets, dogged efforts are being made in the following direction

All manufacturing segments of textile industry will be governed by TUFS (Technology Up gradation Fund Scheme)

Enhance the quality and productivity of cotton. The aim is to enhance 50 percent productivity and sustain quality of international standards.

Set up the technology mission on jute with an objective to enhance cotton productivity of the country.

Inspire private organization to offer financial support to the textile industry.

Encourage private players to establish world class textile industry.

Persuade handloom industry for producing value added items.

Persuade private sectors build up world class textile industry and then embrace various textile processing units scattered in various parts of India.

Restore functions of the TRA(Textile Research Associations) and start giving importance to research works

Insight into the Government policy in terms of cotton and man-made fiber

One of the primary aims of the government policy is to improve the quality and the productivity of cotton and man-made fibre. Ministry of Agriculture, Ministry of Textiles and cotton growing regions are mainly responsible for achieving the target. .

Other important areas for textile industry

IT sector

The IT industry plays a paramount role when it comes to development of textile industry in India. The IT industry has laid down a sound commercial network for the textile industry to prosper and grow.

HRD sector

Optimum utilization of human resources helps build the textile industry to a large extent. Government of India has laid out some effective strategies to optimize its utilization in support of the textile industry.

Financial Planning

Government of India is also prompting talented Indian Designers and technologists of India to work for the Indian Textile Industry and is also planning to establish a venture capital fund in collaboration with financial establishments.

Indian Textile Acts

Some of the important acts with respect to the textile industry include:

Central Silk Board Act, 1948
The Textiles Committee Act, 1963
The Handlooms Act, 1985
Cotton Control Order, 1986

Under the Textile Undertaking Act, 1995 Government of India is trying its best to offer pertinent facilities so as to exploit the sector to its full potential and achieve the said target. The industry is presently growing at the rate of 9-10 percent and is estimated to grow at the rate of 16 percent in value. The clothing and manufacturing sector is expected to grow at the rate of 21 percent in value terms.