Govt Plans Capital Subsidy Scheme for Textile Tech Upgradation, Other Schemes Await Cabinet Nod: Giriraj Singh

New Delhi, Oct 3 (KNN) The government is planning a series of schemes, including a capital subsidy programme for technological upgradation across the textile value chain, amid global market uncertainties, Union Textiles Minister Giriraj Singh said on Thursday.

Addressing micro, small and medium enterprise (MSME) stakeholders at a textile conclave on Thursday, Singh said, “Within a month or two, we will have our schemes approved by the Cabinet,” the Business Standard reported.

He noted that the proposed schemes are expected to receive Cabinet approval within the next one to two months and would address several concerns raised by the industry.

Capital Support For Technology Upgradation

Textile Commissioner Vrunda Manohar Desai said, “Lack of planning meant proper infrastructure development could not take place there (in the clusters). Workers hostels, accommodations are not there. Such 67 legacy clusters are identified and forwarded (these names) to the Department for Promotion of Industry and Internal Trade. A scheme providing capital support for hospitals, skilling centres, common facilities for testing in these legacy textile clusters is also coming,” as quoted by the Business Standard.

The technology upgradation scheme is likely to offer additional subsidies for machinery purchased from domestic textile equipment manufacturers. The total subsidy could cover up to 25 per cent of the upgradation cost in certain cases, Desai added.

Focus On Export Diversification

Amid tariff uncertainties in the US, India's largest textile export market, Singh said the ministry has identified 40 countries for diversifying product exports and expanding market access.

He said India exports textiles to around 132 countries, with 548 districts contributing to the sector.

During April-August 2026, India's overall textile exports increased 6.94 per cent in dollar terms, while apparel exports declined 9.1 per cent. Consequently, cumulative textile and apparel exports fell marginally by 0.24 per cent during the period.

Minister Flags Credit Constraints

Singh also raised concerns over inadequate bank lending to the textile sector, saying limited access to credit was restricting its development.

“We submitted to the Department of Financial Services that lending in the textile sector is very low compared to other sectors and this attitude is a barrier to development… Textiles sector is not getting the elevation due to banks’ indifference,” Singh said.

(KNN Bureau)