India’s Textile Exports Surge Amid Trade Agreements
India’s textile and apparel sector is experiencing notable growth, buoyed by recent trade agreements with Australia and the UAE. The India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA), which eliminated tariffs on all products, took effect on December 29, 2022. Similarly, the Comprehensive Economic Partnership Agreement (CEPA) with the UAE, initiated on May 1, 2022, has opened preferential market access for many products.
In the fiscal year 2024-2025, India’s exports of textiles and apparel, including handicrafts, to the UAE reached an impressive $2,156.24 million, marking a 6.8% increase from the previous year’s $2,019.41 million. Meanwhile, exports to Australia soared to $732.06 million, representing a 10.9% growth compared to $659.99 million in 2023-2024. A significant contributor to this growth is the Bundelkhand region, which includes Jhansi and Lalitpur districts, recognized for its contributions to the global textile and apparel market.
Government Initiatives to Strengthen the Sector
The Indian government is actively enhancing the competitiveness of its textile and apparel sector through various schemes. Key initiatives include the PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks Scheme, which aims to develop modern textile infrastructure, and the Production Linked Incentive (PLI) Scheme, designed to boost manufacturing of manmade fiber and technical textiles.
Additionally, the National Technical Textiles Mission promotes research and innovation while the SAMARTH program focuses on skill development in the textile sector. The government is also fostering the handloom industry through initiatives like the National Handloom Development Program and the Comprehensive Handicrafts Cluster Development Scheme.
Environmental Commitment and Support for Artisans
Addressing sustainability, the government has set up an Environmental, Social and Governance (ESG) Task Force to engage with industry stakeholders on sustainable production methods. Programs under the National Handloom Development Program provide financial aid for using natural dyes and establishing dye houses, while the India Handloom Brand initiative promotes high-quality, eco-friendly handloom products.
In support of environmental standards, the Integrated Processing Development Scheme (IPDS) aims to facilitate the establishment and enhancement of common effluent treatment plants and processing parks, particularly in coastal areas. Recent approvals have allocated ₹275 crore for ongoing projects under this scheme.
Support for Exporters and Market Expansion
The government is also embarking on a Mega Cluster Project in the Bundelkhand region, with an investment of around ₹20 crore, benefiting over 2,000 artisans across seven districts. Targeted assistance and financial incentives are offered to small exporters and weavers in less prosperous districts, ensuring their inclusion in global value chains fostered by free trade agreements.
Moreover, the Ministry of Textiles is actively monitoring India’s textile and apparel exports to international markets such as the United States. Regular consultations with exporters, including micro, small, and medium enterprises (MSMEs), are ongoing to evaluate the impact of tariffs and challenges faced by the sector. In 2025, India’s total exports of textiles and apparel, including handicrafts, reached $37.6 billion, demonstrating the sector’s resilience amidst global challenges.
These developments were shared by Minister of State for Textiles Shri Pabitra Margherita during a written reply to a Lok Sabha question, highlighting the government’s commitment to the growth and sustainability of India’s vibrant textile and apparel industry.
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