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  • 13 December, 2021

  • 9 Min Read

New Textiles Policy 2020


  • The existing National Textile Policy 2000 was framed about 13 years ago. Since then, the industry has undergone various changes on the domestic and international front.
  • The domestic textile industry has seen large-scale modernization and technological up-gradation in the last decade and faces new challenges.

About the New Textile Policy 2020

  • It is aimed at developing in the country a competitive textile sector that is modern, sustainable, and inclusive.
  • This new policy will have a special focus on the manufacturing of apparel and garment, technical textiles, man-made fiber products and exports.

  • It will envisage positioning India as a fully integrated, globally competitive manufacturing and exporting hub.
  • It will entail the strategy and action plan for the country's textile and apparel segments while maintaining a pre-eminent position in handicraft and handloom sectors.
  • Technical textiles: The Cabinet has approved the National Technical Textiles Mission. The govt. will spend Rs.1,000 crore in developing raw materials for technical textiles; research associations will be asked to produce applications for these.

Challenges ahead

  • The need for cost-effectiveness is a major challenge.
  • One factor affecting cost-effectiveness is the lack of scale. New industries should look at the scale. The Textiles Ministry plans to develop 10 mega textile parks. Each one will be an integrated park. It is hoped to bring some economies of scale with this. Any State which has a minimum of 1,000 acres ready for the park will be supported to develop it.
  • Indian exporters are largely cotton-based. Therefore we should move to MMF (manmade fiber). If Indian exports in MMF grow to the level of cotton (i.e., the share of Indian cotton product exports in global trade) the overall exports will increase by $20-25 billion.

Click here to read The PLI Scheme for Textiles in India.

Source: Aspire IAS Notes

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