India's 2024 Textile Policy: A Leap Towards Industry Growth and Employment

India unveils its Textile Policy 2024, focusing on technical textiles and manufacturing processes while offering financial incentives such as capital and interest subsidies, wage assistance, and technological support. The initiative aims to bolster the sector, enhance competitiveness, and promote women's employment.

India has rolled out its Textile Policy for 2024, underscoring a commitment to invigorate the textile sector through an array of financial incentives. The policy is strategically geared towards technical textiles and a spectrum of manufacturing processes, including weaving and dyeing, which are crucial to the industry.

Key highlights of the policy include financial support mechanisms offering capital subsidies from 10 to 35 percent of eligible fixed capital investments, with a ceiling of Rs 100 crores contingent on taluka and activity. It provides credit-linked interest subsidies ranging from 5 to 7 percent for a duration of 5 to 8 years, alongside a limit of 2 to 3 percent annually. Moreover, companies can benefit from Rs 1 per unit of electricity over five years.

The policy also emphasizes labor-intensive units, qualifying new industrial units employing at least 4,000 individuals under the Employee Provident Fund scheme for further subsidies. These units can receive up to 35 percent capital subsidies with a Rs 150 crore limit, and enhanced wage assistance for all employees. The overarching goal is to fortify India's textile industry, particularly fostering female employment while ensuring competitive growth through extensive financial and technological support.

(With inputs from agencies.)