Government Launches Major Incentives as Schemes Aim to Overhaul India's Textile Landscape

Government Launches Major Incentives as Schemes Aim to Overhaul India's Textile Landscape​

The Indian government has rolled out a series of robust schemes and financial incentives designed to significantly uplift the nation's textile industry. These comprehensive initiatives span various sectors, including handlooms, handicrafts, and large-scale technical textiles. The move aims to address structural gaps within the sector and enhance its overall global competitiveness.

Key initiatives include the Production Linked Incentive (PLI) Scheme for Man-Made Fibre (MMF) fabrics, the National Technical Textiles Mission (NTTM), and SAMARTH-Scheme focused on capacity building. These programs are tailored to boost large-scale manufacturing while providing vital support to traditional artisans.

Support Mechanisms Under Raw Material Supply Schemes​

A crucial focus of the government's strategy is supporting the handloom sector through the Raw Material Supply Scheme (RMSS) and the National Handloom Development Programme. Financial assistance is provided to eligible handloom workers for critical needs such as procuring upgraded looms, accessories, and solar lighting units.

Significant support has been directed towards Uttar Pradesh weavers between 2014-15 and 2025-26. Under these initiatives, 86 Small Handloom Clusters and one Mega Handloom Cluster have received financial assistance totaling Rs. 96.34 crore, benefiting a total of 25,885 handloom workers.

To strengthen market presence, 143 marketing events were organized to promote handloom products. Furthermore, 13 Handloom Producer companies were formed to enhance the incomes and productivity of weavers. Six Urban Haats are currently operational in key cities including Varanasi, Agra, and Jhansi, which have received a release of Rs. 2.67 crore.

Incentives Boost Manufacturing Under PLI Scheme​

The Production Linked Incentive (PLI) Scheme is designed to tackle structural deficiencies in India's MMF textiles sector by promoting scale, technology infusion, and value addition. Incentives totaling Rs. 386.30 crore have been released across the country under this scheme to date.

Of the 170 companies selected to benefit from the PLI Scheme, 15 are based in Uttar Pradesh, highlighting the state's growing role in industrialized textile manufacturing. This focus on high-value production is essential for enhancing India's global market standing.

Handicraft Sector Receives Targeted Interventions​

The National Handicrafts Development Programme (NHDP) provides need-based financial support to artisans across the country. For the benefit of handicraft workers, three Guru Shishya Hastshilp Prashikshan Training programmes and one Toolkit Distribution programme were executed during 2025-26, reaching 138 artisans.

Specific attention has been paid to the Bhadohi GI craft in handmade carpets. The Uthan Carpet Producer Company Limited (UCPC) was formed in 2022-23, which subsequently received 11 different interventions aimed at strengthening the regional carpet cluster. Additionally, two Craft-Based Resource Centres (CBRCs) were sanctioned to Indian Institute Carpet Technology (IICT) during 2025-26.

Skilling and Capacity Building in Textiles​

The SAMARTH-Scheme for Capacity Building in Textile Sector focuses on demand-driven and placement-oriented skilling programs across the industry. As of July 22, 2026, a substantial number of beneficiaries have been trained under this scheme.

In Uttar Pradesh, a total of 1,34,503 beneficiaries have successfully completed the training program. Specifically in Bhadohi District, 151 beneficiaries were provided through the SAMARTH-Scheme. These programs underscore the government's commitment to skilled labor development within the textile value chain.