India has unveiled its Textile Policy for 2024, which aims to bolster the industry by offering a number of financial incentives. The two primary topics covered by the policy are technical textiles, which include clothes and accessories, and different manufacturing techniques including weaving and dying. The program offers a range of financial support mechanisms to enterprises, including capital subsidies based on activity and taluka ranging from 10 to 35 percent of qualifying fixed capital investments, with a ceiling of Rs 100 crores.
With an annual maximum of two to three percent, it provides credit-linked interest subsidies of five to seven percent for a period of five to eight years. For five years, companies that use renewable energy sources or DISCOMs can receive one rupee for every unit of power produced. Employees will receive wage assistance, with monthly benefits varying based on their roles from Rs 3,000 to Rs 5,000 for women and Rs 2,000 to Rs 4,000 for males. Members of self-help groups (SHGs) would also receive Rs 5,000 per month for three months of training and up to 25% of their job work turnover in payroll support for five years.
The policy also covers energy and water conservation, technology acquisition assistance, and quality certification. Labor-intensive units—defined as new industrial units that employ at least 4,000 registered individuals under the Employee Provident Fund (EPF) system, including a minimum of 1,000 women—are given special attention in the Textile Policy 2024.
These units qualify for credit-linked interest subsidies of 7% to 8% for a maximum of 8 years, with an annual cap of 3%, and capital subsidies of 25% to 35%, capped at Rs 150 crores. They will also receive subsidies for electricity tariffs, up to an annual cap of Rs 15 crores, for group captive renewable energy sources.
Male employees would receive help of between Rs 2,000 and Rs 4,000 per month for ten years, while female employees will receive wage aid ranging from Rs 3,000 to Rs 5,000. Similar financial assistance will also be given to self-help groups (SHGs). The policy’s overall goals are to improve competitiveness, encourage employment, particularly for women, and expand India’s textile sector through a range of financial and technological assistance.