New Delhi: The Indian textile industry has emerged as one of the largest engines for employment generation in the country, providing direct livelihoods to more than 45 million people. Highlighting the sector’s inclusive nature, the latest Periodic Labour Force Survey (PLFS) data reveals that women now make up more than 50% of the workforce in the textile and apparel segment.
Trade Offensive: 16 FTAs and Beyond
To navigate global trade barriers and secure market access, the Government of India has prioritized trade negotiations with multiple nations. India has now signed 16 Free Trade Agreements (FTAs), including the landmark India-Oman CEPA signed in December 2025. Furthermore, the government has recently concluded FTA negotiations with New Zealand and the European Union (EU) to provide tariff advantages for Indian exporters.
Liquidity Lifeline for MSME Exporters
Recognizing the working capital challenges faced by smaller players, the government has introduced the Interest Subvention for Pre- and Post-Shipment Export Credit under the ‘Niryat Protsahan’ mission. This rules-based mechanism aims to:
Reduce Credit Costs: Lowering the interest burden on rupee export credit.
Enhance Liquidity: Ensuring MSMEs have the necessary capital to meet order requirements.
Zero-Rated Exports: Implementing the RoSCTL and RoDTEP schemes to rebate state and central taxes, ensuring taxes are not exported alongside products.
The Manufacturing Landscape
Data from the Annual Survey of Industries (ASI) indicates a sprawling but varied manufacturing base across states. As of 2020-21, the ‘All India’ count for textile and apparel factories stood at 29,995 units, with 22,410 currently in operation.
Top States by Total Number of Factories (2020-21):
Tamil Nadu: 11,293 units (8,586 operational).
Gujarat: 3,439 units (2,478 operational).
Maharashtra: 2,774 units (1,843 operational).
Future-Proofing with PM MITRA & PLI
To ensure long-term competitiveness, the Ministry of Textiles is implementing a suite of high-impact schemes:
PM MITRA Parks: Creating world-class industrial infrastructure.
PLI Scheme: Incentivizing production of MMF (Man-Made Fibre) fabrics and Technical Textiles.
SAMARTH: Focusing on demand-driven skilling and placement.
National Technical Textiles Mission (NTTM): Driving research and market development in high-tech textile applications.
In a written reply to the Rajya Sabha, Minister of State for Textiles, Shri Pabitra Margherita, noted that the definition of a ‘factory’ has been recently amended in several states—including Gujarat, Punjab, and Uttar Pradesh—to raise the worker threshold, a move expected to reduce the compliance burden for smaller units.