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Textile Sector: Trade Preparedness and Export Competitiveness

UPSC / SSC current affairs note · Economy

EconomyInternational TradeSchemes

Why in news

India's textile and apparel exports (including handicrafts) grew 1.8% in 2025-26 to ₹3,25,339 crore. The government has announced several recent measures to boost competitiveness, including extension of RoSCTL, temporary customs duty exemptions on cotton and MMF inputs, and launch of the RELIEF initiative for exporters affected by geopolitical disruptions.

Background

The textile sector is a key contributor to India's economy and employment. The government has been implementing various schemes to enhance global competitiveness and export readiness.

Key facts

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  1. Textile and apparel exports (incl. handicrafts) in 2025-26: ₹3,25,339 crore, up 1.8% from ₹3,19,573.2 crore in 2024-25.

  2. Exports increased to over 100 countries.

  3. PM MITRA scheme (including Amravati, Maharashtra) is one of the key schemes for textile parks.

  4. PLI scheme for textiles, National Technical Textiles Mission, SAMARTH scheme, and Export Promotion Mission are other initiatives.

  5. RoSCTL scheme extended till 30 September 2026 to provide duty remission on apparel and made-ups.

  6. Temporary customs duty exemption on cotton (HS 5201) from 1 June to 31 October 2026.

  7. Temporary customs duty exemption on key MMF inputs like PTA and MEG.

  8. GST rate rationalization to correct inverted duty structure in MMF value chain.

  9. RELIEF initiative launched to support exporters affected by West Asia geopolitical disruptions and maritime logistics issues.

  10. 40 priority countries covered under a focused export promotion and market diversification strategy.

Prelims pointers

  • PM MITRA (Mega Integrated Textile Regions and Apparel Parks) scheme
  • PLI scheme for textiles
  • National Technical Textiles Mission
  • SAMARTH (Capacity Building in Textile Sector) scheme
  • RoSCTL (Remission of State and Central Taxes and Levies) scheme
  • RELIEF (Relief for Exporters) initiative
  • Bharat Tex 2026 (3rd edition: 14-17 July 2026)
  • India-UK CETA (Comprehensive Economic and Trade Agreement)
  • India-EU FTA negotiations completed
  • India-New Zealand FTA signed

Mains angles

  • Discuss the impact of government schemes like PM MITRA, PLI, and RoSCTL on the competitiveness of India's textile sector.
  • Analyze the role of free trade agreements (FTAs) in diversifying India's textile export markets.
  • Examine the challenges faced by the textile sector due to global geopolitical disruptions and the effectiveness of measures like RELIEF.
  • Evaluate the district-centric approach (100 champion and 100 aspiring textile districts) in promoting textile exports.
Textile Sector: Trade Preparedness and Export Competitiveness — UPSC Economy · in5points