India's Rajasthan aims to attract textile industry, showers incentives

10 Feb '25

2 min read

India's Rajasthan aims to attract textile industry, showers incentives

Pic: Adobe Stock

Insights

Indian states are competing to attract investments in the textile and apparel sector.
Rajasthan has launched a new policy, incorporating garment manufacturing for the 1st time, aiming to draw ₹40,000 crore (~$4.57 billion) in 5 years.
It includes various incentives such as subsidies and tax reimbursements.
Rajasthan government seeks to bolster traditional and technological textile production.

Indian states are aggressively competing to attract more investment in the textile and apparel sector. The country's western state, Rajasthan, has also joined the race by announcing multiple incentives and rebates in its new textile policy. For the first time, the state has incorporated garment manufacturing into its textile policy. The aim is to attract an investment of ₹40,000 crore (~$4.57 billion) over the next five years.

It is to be noted that Tamil Nadu, Telangana, Andhra Pradesh, Maharashtra, Gujarat, Bihar, Uttar Pradesh, and several other states have announced increasingly lucrative policies to attract investment in the textile and apparel sectors.

Last week, the Rajasthan Cabinet approved a new textile and apparel policy. The cabinet meeting, chaired by Chief Minister Bhajan Lal Sharma, marked the first time garment manufacturing was incorporated into the policy. It is expected to attract an investment of ₹10,000 crore (~$1.14 billion) in garment manufacturing.

The state government has announced it will provide investment subsidies, capital subsidies, turnover-linked incentives, and other asset creation incentives as top-ups like employment boosters, anchor boosts, and regional anchor boosters. Additionally, the government will provide a flexible land payment facility, tax reimbursement, a mother ancillary ecosystem incentive, subsidies for electricity, green solutions, freight, and intellectual property rights (IPR). It will also encourage industries to engage in skill and training, support private textile and apparel park developers, and specifically target micro, small, and medium enterprises (MSMEs).

The state is already known for its traditional handloom and textile handicrafts. Now, it has prioritised large-scale technological textiles production. Research and development incentives have been provided to produce high-performance technical textiles.

The scheme aims to support the development of greenfield private industrial parks for the production and processing of clothing and textiles. Incentives under the Rajasthan Private Industrial Park Scheme 2025 will be available to the parks for textile and apparel.

Earlier, members and office bearers of the Garment Exporters Association of Rajasthan (GEAR) met with Rajasthan Industries Minister Rajyavardhan Singh Rathore to discuss the proposed policy. They asked for the inclusion of Jaipur garment manufacturers within the umbrella of the One District One Product (ODOP) programme as well as in the new policy.

Fibre2Fashion News Desk (KUL)

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