Under Union Budget 2018-19, Government of India allocated around Rs 7,148 crore (US$ 1 billion) for the textile Industry.
Rs 2,300 crore (US$ 355.27 million) have been allocated for the Technology Up-gradation Fund Scheme (TUFS).
The allocation for Remission of State Levies (ROSL) is Rs 2,163.85 crore (US$ 334.24 million), which is expected to be beneficial for exporters of made-ups and apparels, as backlog will be cleared and working capital will be released.
The Government has also proposed to contribute 12% of the new employees’ wages towards Employee Provident Fund (EPF) over the next three years, which is expected to boost hiring in the apparel segment and has also extended fixed-term employment to all sectors.
The Government has allocated Rs 112.15 crore (US$ 17.32 million) towards schemes for power loom units.
The Government has allocated Rs 30 crore (US$ 4.63 million) for the Scheme for Integrated Textile Parks, under which there are 47 ongoing projects.
The handloom clusters under the National Handloom Development Programme will get Rs 396 crore (US$ 91.17 million) and the Integrated Processing Development Scheme will get Rs 3.8 crore (US$ 0.59 million)
The Government of India announced a Special Package to boost exports of textile industry by US$ 31 billion, create one crore job opportunities and attract investments worth Rs 800.00 billion (US$ 11.93 billion) during 2018-2020. The package offers labour law reforms, additional incentives under Amended Technology Upgradation Fund Scheme (ATUFS), enhanced duty drawback coverage and relaxation of Section 80JJAA of Income Tax Act. Further, the duty drawback rates under Merchandise Exports from India Scheme (MEIS) have been enhanced from 2% to 4% for apparel and made-ups from 1st November 2017. As of August 2018, the Special Package has generated additional investments worth Rs 253.45 billion (US$ 3.78 billion) and exports worth Rs 57.28 billion (US$ 854.42 million) since its launch.
The Government of India has taken several measures including Amended Technology Up-gradation Fund Scheme (A-TUFS). The scheme is estimated to create employment for 3.5 million people and enable investments worth Rs 950.00 billion (US$ 14.17 billion) by 2022.
To boost exports from India’s handicraft sector, the Government of India is in process of identifying 25 export oriented clusters, as of September 2018.
The Government of India approved Integrated Wool Development Programme (IWDP) to provide support to the wool sector starting from wool rearer to end consumer which aims to enhance the quality and increase the production during 2017-18 and 2019-20.
Technology Up-gradation Fund Scheme (TUFS)- Investment was made to promote modernisation and up-gradation of the textile industry by providing credit at reduced rates. A subsidy of Rs 1,400 crore (US$ 216.25 million) was released under this scheme in 2017.Under the Union Budget 2018-19, Rs 2,300 (US$ 355.27 million) crore have been allocated for this scheme.
SAATHI Scheme- The Union Ministry of Textiles, Government of India, along with Energy Efficiency Services Ltd (EESL), has launched a technology upgradation scheme called SAATHI (Sustainable and Accelerated Adoption of Efficient Textile Technologies to Help Small Industries) for reviving the power loom sector of India.
Merchandise Exports from India Scheme-The Directorate General of Foreign Trade (DGFT) has revised rates for incentives under the Merchandise Exports from India Scheme (MEIS) for two subsectors of Textiles Industry - Readymade garments and Made ups - from 2% to 4%.
Scheme for Capacity Building in Textiles Sector (SCBTS)- The Cabinet Committee on Economic Affairs (CCEA), Government of India has approved a new skill development scheme named 'Scheme for Capacity Building in Textile Sector (SCBTS)' with an outlay of Rs 1,300 crore (US$ 202.9 million) from 2017-18 to 2019-20. The scheme is aimed at providing a demand driven and placement oriented skilling programme to create jobs in the organised textile sector and to promote skilling and skill up-gradation in the traditional sectors. Scheme for Capacity Building in Textiles Sector (SCBTS)- The Cabinet Committee on Economic Affairs (CCEA), Government of India has approved a new skill development scheme named 'Scheme for Capacity Building in Textile Sector (SCBTS)' with an outlay of Rs 1,300 crore (US$ 202.9 million) from 2017-18 to 2019-20. The scheme is aimed at providing a demand driven and placement oriented skilling programme to create jobs in the organised textile sector and to promote skilling and skill up-gradation in the traditional sectors.
Textile Incentives - The Textile Ministry of India earmarked Rs 690 crore (US$ 106.58 million) for setting up 21 readymade garment manufacturing units in seven states for development and modernisation of Indian Textile Sector.
Khadi App Store - The National Board of Khadi and Village Industries Commission (KVIC) launched a mobile phone application for locating 4,000 Khadi stores in India.