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Government Policies Relating to the Textile Industry in India


The Indian textile industry is one of the largest industries in the world. The Ministry of Textiles in India has formulated numerous policies and schemes for the development of the textile industry in India. Some of them are detailed in the following sections.

National Textile Policy

The National Textile Policy was formulated keeping in mind the following objectives:


  • Development of the textile sector in India in order to nurture and maintain its position in the global arena as the leading manufacturer and exporter of clothing.
  • Maintenance of a leading position in the domestic market by doing away with import penetration.
  • Injecting competitive spirit by the liberalisation of stringent controls.
  • Encouraging Foreign Direct Investment as well as research and development in this sector.
  • Stressing on the diversification of production and its upgradation taking into consideration the environmental concerns.
  • Development of a firm multi-fibre base along with the skill of the weavers and the craftsmen.

Thrust areas

Government of India is trying to promote textile industry by giving emphasis on several areas of textile, which are as below:


  • Innovative marketing strategies
  • Diversification of product
  • Enhancement of textile oriented technology
  • Quality awareness
  • Intensifying raw materials
  • Growth of productivity
  • Increase in exports
  • Financing arrangements
  • Creating employment opportunities
  • Human Resource Development

Government policy on cotton and man-made fiber

One of the principal targets of the government policy is to enhance the quality and production of cotton and man-made fiber. Ministry of Agriculture, Ministry of Textiles, cotton growing states are primarily responsible for implementing this target.




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