Policy Reforms Needed to Boost Textile Industry Competitiveness: Parliamentary Committee
Amidst uncertainty regarding tariffs and declining demand in the US market, an Indian parliamentary committee has recommended robust policy and financial support to enhance the competitiveness of the textile and apparel industry. The committee has emphasized the need for the industry to rapidly diversify into areas such as technical textiles, man-made fibers (MMF), sustainable textiles, home furnishings, and high-value garments.
The Parliamentary Standing Committee on Commerce, chaired by Rajya Sabha MP Dola Sen, tabled its 200th report on the ‘Evaluation of India-US Trade Relations’ in both Houses of Parliament. The report assesses the challenges faced by Indian exporters due to US tariff measures and suggests several steps to strengthen export competitiveness.
The committee has recommended accelerating the implementation of PM MITRA parks, the Production Linked Incentive (PLI) scheme, and the Samarth scheme to modernize the textile sector and boost productivity. Additionally, it has suggested establishing dedicated MMF manufacturing clusters within the new PM MITRA parks, enabling MSMEs to easily access synthetic raw materials locally and align production with global demand.
The report calls for increased support under schemes such as RoDTEP, RoSCTL, the Interest Equalization Scheme, and other export incentive programs. It also emphasizes ensuring the speedy disbursement of concessional working capital, export credit, credit guarantees, and other financial assistance to textile MSMEs.
The committee has suggested considering an emergency relief program under RoSCTL for exporters affected by demands for price cuts from US buyers. Furthermore, it has recommended developing government-subsidized textile warehousing hubs at key US shipping entry points, as well as green-channel and fast-track customs corridors at Indian ports. For the carpet and handloom sectors, the committee has emphasized boosting export support through trade fairs, branding, GI promotion, buyer-seller meets, digital marketing, and design innovation.
The committee has also recommended technology upgrade grants and a special market-linked incentive scheme for textile exporters, enabling the industry to diversify its product range in line with the evolving preferences of US consumers and strengthen its competitiveness in the global market.
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