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Context

The Ministry of Textiles has signed Memorandum of Understanding (MoUs) with 15 States as part of the ‘Textiles focused Research, Assessment, Monitoring, Planning And Start-Up (Tex-RAMPS)’ scheme.

Textile Sector in India

GDP Contribution

The textile and apparel industry contributes 2.3% to GDP, 13% to industrial production, and 12% to exports. (Source: PIB)

Employment

It is the second-largest employer after agriculture, providing direct employment to over 45 million people. (Source: PIB)

Exports

India exported textile items worth $34.4 billion in 2023-24, with apparel constituting 42% of the export basket, followed by raw materials/semi-finished materials at 34% and finished non-apparel goods at 30%. (Source: PIB).

What is TEX-RAMPS?

The Textiles Focused Research, Assessment, Monitoring, Planning, and Start-up (Tex-RAMPS) Scheme, is a highly specialized Central Sector Scheme by the Ministry of Textiles. 

It is designed to "future-proof" the textile ecosystem by focusing on research, data systems, and innovation.

It aims to address critical gaps in the textile sector's innovation and data infrastructure through five core pillars:

• Research & Innovation: To promote advanced R&D in high-growth areas like smart textiles, sustainability, and process efficiency.
• Data, Analytics & Diagnostics: To create robust data systems for evidence-based policymaking, including employment mapping, supply chain analysis, and the 'India-Size' project.
• Integrated Textiles Statistical System (ITSS): A real-time data analytics platform for structured monitoring and strategic decision-making across the sector.
• Capacity Development: To strengthen state-level planning, disseminate best practices, and build a strong knowledge ecosystem through workshops and events.
• Start-up & Innovation Support: To nurture high-value textile start-ups by supporting incubators, hackathons, and fostering academia-industry collaboration.

Other Schemes Powering the Textile Value Chain

PM MITRA Parks Scheme

• Objective: To build an integrated textile value chain, from spinning to apparel manufacturing, at a single location.
• Key Features:
• Approval for 7 Mega Integrated Textile Region and Apparel (PM MITRA) Parks.
• Total outlay of ₹4,445 crore until 2027-28 (Source: PIB).
• Develops common infrastructure like plug-and-play facilities, effluent treatment plants, and testing centres to reduce logistics costs and enhance competitiveness.

Production Linked Incentive (PLI) Scheme for Textiles

• Objective: To boost domestic manufacturing and exports of high-value Man-Made Fibre (MMF) fabrics, MMF apparel, and Technical Textiles.
• Key Features:
• An outlay of ₹10,683 crore over five years (Source: Ministry of Textiles).
• Provides financial incentives on incremental turnover, encouraging companies to achieve scale and global competitiveness.

National Technical Textiles Mission (NTTM)

• Objective: To position India as a global leader in Technical Textiles, a high-growth, high-value segment.
• Key Features:
• Launched in 2020 with an outlay of ₹1,480 crore until 2025-26 (Source: PIB).
• Focuses on four pillars: R&D, Promotion and Market Development, Export Promotion, and Education & Skilling.
• Supports innovation in areas like geotextiles, agro-textiles, medical textiles, and smart textiles.

Samarth Scheme

• Objective: A demand-driven and placement-oriented skilling program to address the shortage of skilled workers in the organized textile sector.
• Key Features:
• Also known as the Scheme for Capacity Building in the Textile Sector (SCBTS).
• Provides training across the entire textile value chain, excluding spinning and weaving.
• The scheme has been extended until March 2026 with a budget of ₹495 Crore to train 3 lakh persons (Source: PIB, 2024).
• Over 85% of beneficiaries trained so far are women, significantly contributing to women's empowerment (Source: PIB).

What Are The Challenges In The Textile Sector? 

Structural & Scale Issues

The industry is highly fragmented, dominated by small-scale and unorganized players, which hinders economies of scale and technology adoption.

Global Competition

Intense competition from countries like Bangladesh and Vietnam, which benefit from lower labor costs and preferential trade agreements with key markets like the EU, the USA..

Technology & Value Chain

Over-dependence on cotton requires scaling up production and innovation in Man-Made Fibres (MMF) and Technical Textiles to align with global market trends.

Infrastructure & Logistics

High logistics costs and inadequate infrastructure in key textile clusters reduce competitiveness. Schemes like PM MITRA are designed to address this gap.

Sustainability & Compliance

Meeting stringent international environmental and social compliance standards (e.g., related to water usage, chemical discharge) is a major challenge, especially for MSMEs.

Way Forward  

Enhancing Global Integration

Strategically negotiating and leveraging Free Trade Agreements (FTAs) with key markets like the EU and USA to gain a competitive edge over rivals.

Promoting Public-Private Partnerships (PPP)

Encouraging PPP models for developing infrastructure in PM MITRA parks to ensure efficiency, timely execution, and optimal resource utilization.

Strengthening the R&D Ecosystem

Ensuring effective implementation of the Tex-RAMPS scheme to bridge the gap between research institutions and industry, leading to commercially viable innovations.

Focus on Sustainability

Promoting a circular economy by incentivizing the use of recycled fibers, sustainable manufacturing processes, and green technologies.

Inclusive Growth

Ensuring that the benefits of government schemes reach the highly fragmented informal sector and micro-enterprises through targeted outreach and simplified compliance norms.

Conclusion

India aims to modernize the textile sector into a globally competitive industry through a holistic policy framework combining infrastructure (PM MITRA), production incentives (PLI), skilling (Samarth), and innovation (Tex-RAMPS).

Source: THEHINDU