TEXTILES
INDIA LANDSCAPE
National Strategic Priority
- India accounts for approximately 4.1% of global trade in textiles and apparel.
- India was the 6th-largest exporter of textiles and apparel globally in 2024
- India aims to build a USD 250 billion domestic textile market by 2030
- India has set an ambition of achieving USD 100 billion in textile and apparel exports by 2030.
- India’s textile and apparel sector is targeted to reach a combined scale of approximately USD 350 billion by 2030, comprising a USD 250 billion domestic market and USD 100 billion exports.
- The PLI Scheme for Textiles has an approved outlay of ₹10,683 crore, focusing on MMF apparel, MMF fabrics and technical-textile products.
Sector Performance at the National Level
- India is one of the world’s largest producers and consumers of cotton
- India is the world’s largest producer of jute.
- India with the production of 41,121 MTs of silk is the second largest producer of silk in the world after China.
- Textiles and apparel, including handicrafts, accounted for 8.63% of India’s total exports in 2024-25
- The textile and apparel industry is one of the largest contributors to India’s economy, contributes 2.3% to our GDP, 13% to industrial production, and 8.63% to exports.
- The sector directly employs around 45 million people and supports the livelihoods of more than 100 million people indirectly.
- India’s technical-textiles market is estimated at approximately USD 22 billion.
Rajasthan Landscape
Sector Performance:
- Rajasthan exported textiles and apparel worth approximately ₹14,000 crore in FY 2025-26
- Textile exports grew by 8.3% year-on-year.
- The state has a large ecosystem of 68,563 textile enterprises (as per Udyam Registration)
- The sector supports approximately 71,000 artisans and craftspeople.
- Rajasthan has 8 registered GI textile/craft products.
Rajasthan: Value Proposition for Textiles Investors
- 100% FDI allowed under automatic route in the textile and apparel
- Rajasthan offers a seamless Fibre-to-Fashion ecosystem, anchored by India's largest wool production, strong cotton availability, leading textile clusters, integrated manufacturing capabilities, and globally recognized textile traditions.
- Rajasthan was India’s largest wool-producing state, with a 47.85% share in 2024-25.
- Rajasthan ranked fifth in cotton production, with 18.45 lakh bales in 2024-25.
- The state is a leading producer of poly-viscose dyed yarn, with an industry-reported share of approximately 70%.
- Rajasthan’s traditional textile strengths include Bandhani, Leheriya, Kota Doriya, appliqué and block printing
- Four established textile hubs can be highlighted: Bhilwara, Jaipur, Pali and Balotra.
- Textile parks may be identified at Kishangarh, Pali and Jaipur, together with the Apparel Park at Jagatpura, Jaipur.
All major locations in the state are well connected to domestic and export markets through all modes.
- Access to ~40% of India’s Market
- 9 Economic Corridors
- 39% of DFC pass through Rajasthan
- 58% of the State under DMIC
- Through Air: Direct connectivity to 20+ domestic destinations and key international hubs such as Dubai, Abu Dhabi, Sharjah, Muscat, and Bangkok
- 1M+ graduates annually from 4,600+ higher education institutes, 48 MBA institutes, 74 engineering colleges, 116 polytechnics, 3,000+ ITIs.
- Readily available talent pool with presence of prominent national institutions such as – NIFT, IICD, IIHT, IIT, etc.
- Support offered under schemes available for skilling, and infrastructure and technological development.
Policies & Incentives
Rajasthan Investment Promotion Scheme (RIPS) 2024
Incentives available for Textile & Apparel Sector
1. ASSET CREATION INCENTIVES (Anyone)
Investment Subsidy (State Tax Reimbursement)
- Quantum: 75% reimbursement of State tax
- Period: 7 years from commencement of Commercial Production
Capital Subsidy
- Quantum: 13% to 28% of Eligible Fixed Capital Investment (EFCI)
- Disbursement: 10 equal annual instalments after Commercial Production
Turnover Linked Incentive (TLI)
- Quantum: 1.2% to 2% of Net Sales Turnover
- Tenure: 10 years
Payroll Subsidy
- Quantum: 50% of gross monthly salary, Maximum ₹8,000 per employee per month
- Tenure: 5 years
- Condition: Employment generation ≥ 2.5 times minimum prescribed employment
2. ASSET CREATION INCENTIVE – TOP UPS
2.1 Employment Booster
- (Not applicable if payroll subsidy is opted for)
- Additional percentage on Asset Creation Incentive based on employment generation:
- 10% → employment ≥1.5x to <2x minimum threshold
- 12.5% → employment ≥2x to <2.5x
- 15% → employment ≥2.5x
2.2 Thrust Sector Booster
- Benefit: Additional 10% on ACI
- Eligibility: Units in notified focus manufacturing sub sectors
2.3 Regional Anchor Booster
- Benefit: Additional 20% on ACI (subject to applicable ceiling)
- Additional Facility: 100% waiver/reimbursement of banking, wheeling and transmission charges for captive power plants
2.4 Interest Subvention
- Rate: 5% on term loan for Plant & Machinery
- Tenure: 5 years
- Limit: Maximum 2.5% of EFCI per annum
- Note: Applicable proportionately if loan extends beyond Plant & Machinery component
3. SPECIAL INCENTIVES
Flexible Land Payment (RIICO)
- 25% land cost payable upfront
- Balance 75% payable in 10 annual instalments
- Interest @ 8% per annum
Additional Reimbursement – Textile Sector
- Additional 5% reimbursement of State tax or
- 5% VAT reimbursement on PNG
- Tenure: 7 years
Group Captive Renewable Power
- 51% of investment in captive RE plant eligible as EFCI
- Enhanced to 100% where group captive arrangement is ≥12 years
Mother–Ancillary Ecosystem
- Combined investment eligibility beyond ₹500 crore
- Conditions:
- Ancillary units within 50 km
- ≥50% production supplied to mother unit
4. EXEMPTIONS & REIMBURSEMENTS
Electricity Duty
- 100% exemption for 7 years (including captive RE plants)
Stamp Duty
- 75% exemption + 25% reimbursement
Conversion Charges
- 75% exemption + 25% reimbursement
Green Solutions
- 50% reimbursement of eligible environmental project costs
- Maximum ₹12.5 crore
5. ADDITIONAL INCENTIVES
Freight Incentive
- 25% reimbursement for exports via State ICDs/Air Cargo
- Cap ₹25 lakh per unit per annum
Skill & Training
- 50% reimbursement of training cost
- Up to ₹4,000 per worker per month for 6 months or
- ₹1 lakh per employee per year (max 20 employees)
Intellectual Property Creation
- 50% reimbursement of in house R&D/IP costs
- Maximum ₹1 crore
Textile & Apparel Park Developers
- Eligible under provisions of Private Industrial Park Scheme, 2025
Rajasthan Micro, Small and Medium Enterprises Policy, 2024
- Exemption from Approvals: MSMEs are exempt from obtaining certain approvals and inspections required under various state laws for 5 years.
- Support for Inclusive Growth: The Act aims to promote inclusive economic growth and employment generation by supporting MSMEs.
Ease of Doing Business
- RajNivesh portal provides a single point, online interface and a time-bound clearance system by acting as a one-stop information / registration / approval / tracking centre for clearances & approvals
- The platform integrates over 190+ services across 18 departments, emphasizing the state's commitment to the implementation of investor-friendly policies that enhance ease of doing business and promote sustainable development policies that enhance ease of doing business and promote sustainable development.
- Automated Processes:Automated systems for services like registration, licensing, and bill payments./li>
- Reduced Compliance Burden: Simplified labor laws, environmental clearances, and other regulatory procedures.
- Time-Bound Services: Guaranteed timelines for services, ensuring prompt delivery.
- Dedicated Teams:Specialised teams for investor support, handholding, and facilitation.
Opportunities
Raw materials and yarns
- Cotton yarn
- Polyester fiber / filament
- Viscose fiber
Textile manufacturing and processing
- Yarn manufacturing
- Knitting and weaving units
- Textile processing
- machinery and components
Strong potential in technical textiles, smart textiles, and R&D
- Agrotech
- Agrotech
- Clothtech
- Geotech
- Hometech
- Indutech
- Meditech (Medtech)
- Mobiltech
- Oekotech (Ecotech)
- Packtech
- Protech
- Sportech
Major Players in Rajasthan
