Govt working on a separate PLI for garments: Textile minister Giriraj Singh

The Indian textile industry, which was worth $112 billion a decade ago, has grown by nearly 60 per cent to $176 billion today and our target is to grow it to $350 billion by 2030, says Giriraj Singh

Union Minister for Textiles Giriraj Singh spoke to Shiva Rajora and Asit Ranjan Mishra in New Delhi on the government’s initiatives to change the course of the labour-intensive textile industry, including his push for technical as well as new-age textiles. Edited excerpts: 

What are the challenges and opportunities the textile sector is facing? 

The Indian textile industry, which was worth $112 billion a decade ago, has grown by nearly 60 per cent to $176 billion today and our target is to grow it to $350 billion by 2030. Today India is making significant strides in the technical textile sector as well, which was never paid any attention in the past. We are also keen on making the textile sector the leading job generator for the country and hope that 25 million jobs will be created in the sector by 2030.  We are also working in 500 districts across the country, wherein we are integrating and bringing small and artisanal weavers, and handloom workers on a platform, so as to provide them a market. The free-trade agreements (FTAs) we are signing with the European Union and other countries will also provide them an export market. 

Sustainability and circularity are at the core of India’s technical textile strategy. Natural fibres like jute, hemp, ramie, cotton, silk, and even milkweed are being reimagined for high-performance applications, benefiting the environment while empowering our farmers and industries. 

The Indian textile sector for long has suffered due to the lack of a fully functional ecosystem, like the one that existed in Southeast Asian countries. Our government is committed to providing the industry this ecosystem. 

The government had launched the production-linked incentive (PLI) scheme fo textiles. Could you give an update on how the response has been? How much investment has come and how has been the utilisation of funds? 

The Centre in 2021 approved the PLI scheme for textiles with a budgetary outlay of ₹10,683 crore for a five-year period to boost the production of man-made fibre (MMF) apparel and MMF fabrics, among others. So far, the Centre has approved 80 applicants under the PLI scheme for textiles. In this year, our target is disbursing ₹500 crore, but we hope we will be able to achieve the results. It is estimated that over five years, the output-linked plan for the sector would lead to fresh investments of more than ₹19,000 crore and create more than 750,000 jobs. 

We are also in talks with global brands from Japan, Qatar and other nations — those that are keen on investing under the scheme and talks are progressing rapidly. 

Due to a slow pickup in the PLI scheme, will it be tweaked to include garments as well, something which you have mentioned as well in the past? 

No, there is no need to make any changes in the policy as of now. We are in consultations with the industry and other stakeholders and are positive that the scheme will see a sharp pickup in the coming months.  For the general garments, we will come up with a separate PLI scheme. We are working on it and talks are progressing at a rapid pace. Similarly, export-promotion schemes like the Rebate of State and Central Taxes and Levies are also showing good results, and with those having a few months to go, we will take a call on their extension as well beyond March 2026. 

 

Globally, MMF dominates but India’s policy rhetoric often romaticises natural fibre. Is this a strategic misalignment with market realities? 

A few years ago, technical textiles were viewed as a peripheral segment, limited in scope, underinvested, and heavily reliant on import. Today, they stand at the centre of transformation in the textile sector. As of 2024, India’s technical textiles market was valued at $26 billion. We are on track to touch $40-45 billion by 2030. 

Technical textiles are at the centre of PLI scheme’s focus, as you know. Besides, we also launched the National Technical Textiles Mission (NTTM) to drive focused investment in research and innovation. A total of 168 high-impact projects have been approved with government support of ₹510 crore. 

The mandatory use of 73 technical textile items across sectors like health care, agriculture, infrastructure, and defence has led to their integration into public infrastructure. Bharat Tex 2025 has amplified India’s visibility, where exhibitors reported receiving ample orders from buyers across the globe. 

Innovation is also being  driven through our network of the National Institute of Fashion  Technology (NIFT), where the thrust  is on making future-ready designs and fibres. 

Starting next year, India will also start producing carbon fibre as well, which has got extensive usage in the aeronautics industry.  

 

What is the ministry’s current thinking on MMF versus natural fibre focus? 

In natural fibres as well, we are focusing on improving the productivity of cotton and creating a new market for jute products. We have done extensive research on boosting cotton productivity and have targeted improving the yield of cotton by 1.5 times by 2030 and match the global standards of 600 kg per hectare. 

In jute, I have asked the industry to drive innovation beyond traditional government procurement into garments, carpets, and packaging. Diversification is the key for jute producers.   

Similarly, using our labs and research institutes, we are driving innovation in a number of untapped natural fibres like bamboo fibre, milkweed, flax, sesa­me, among others. Industry trials are already on with these new-age fibres.

 

The government has cleared setting up seven PM MITRA parks, which have been billed as “transformative”. But how do you plan to avoid the fate of previous textile cluster initiatives that underdelivered — like the Scheme for Integrated Textile Parks and Mega Cluster Scheme? 

To promote domestic manufacturing, reduce dependence on imports, and generate employment, the government has approved seven parks as of now. Each of these will feature modern facilities, including research centres, testing labs, and skill-development centres to train workers in advanced textile techniques. 

Through these textile parks, we aim to establish India as a global hub for textile manufacturing with world-class infrastructure and competitive advantages for manufacturers. 

I am hopeful that every park will have investments of at least ₹10,000 crore, with job opportunities for at least 100,000 people. Work has commenced in four parks. By 2026, you will start seeing the results.    

 

India is expected to soon have trade deals with the European Union, United States, and United Kingdom? What should the textile industry do to reap the maximum benefit? 

I have already communicated this to my counterparts in the commerce ministry. They are working on it and I am hopeful they will put forth the arguments vociferously in the negotiations. Talks with the United States will commence after July. Let’s see how they unfold.