Textile Sector – Cotton, Jute, Wool, Silk, Handloom, etc.

Jan, 23, 2019

Project ReWeave enables handloom weavers to sell crafts online


Mains Paper 3: Economy | Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth

From UPSC perspective, the following things are important:

Prelims level: Project ReWeave

Mains level: The importance of textiles and apparels industry and issues related to it.


  • Microsoft India Saturday announced the launch of a new e-commerce platform here for handloom weavers under its Project ReWeave, as part of its philanthropic initiative.

Project ReWeave

  1. It is e-commerce platform that would help connect artisans to the buyers directly enabling them to expand to newer customers and markets.
  2. It hosts signature collections created by the weaver communities, showcase traditional designs and products created from natural dyes.
  3. It would help sell to a broad set of customers, support weavers in increasing their income and earning a sustainable livelihood while also reviving traditional forgotten Indian art.
  4. Microsoft, in association with the National Institute of Fashion Technology (NIFT), has also curated a special curriculum in ‘CAD and Colour for Handloom Weaving’ to provide digital training in handloom design.

Benefits of such initiatives

  1. With the introduction of our new e-commerce platform, digital empowerment centres and the new design curriculum, the weavers will be able to build on the rich handloom heritage of India and also reach out to a wider customer base.
  2. These initiatives like e-commerce marketplace and design training would ensure weaver communities sustain themselves and provide livelihood to artisans.
  3. This also is a practical solution to motivate younger generation of weavers to continue with their traditions and not divert into other professions.
Jan, 03, 2019

[pib] Yarn Bank Scheme



Mains Paper 3: Economy | Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth

From UPSC perspective, the following things are important:

Prelims level: Yarn Bank Scheme

Mains level: The importance of textiles and apparels industry and issues related to it.


Yarn Bank Scheme

  1. To avoid fluctuation in yarn price, government has launched a Yarn Bank Scheme as one of the component of PowerTex India with effect from 01.04.2017 to 31.03.2020.
  2. The Scheme provides interest free corpus fund up to Rs.2.00 crore to the Special Purpose Vehicle (SPV)/Consortium formed by powerloom weavers to enable them to purchase yarn at wholesale rate and give the yarn at reasonable price to the small weavers
  3. It aims to avoid middleman and local supplier’s brokerage charge on sales of yarn.


  1. To provide interest free corpus fund to Special Purpose Vehicle (SPV) / Consortium to enable them to purchase yarn at wholesale rate and give the yarn at reasonable price to the small weavers.
  2. To avoid middle man/ local supplier’s brokerage charge on sales of yarn.

Eligibility Beneficiaries

  1. Registered Co-operative Society.
  2. Trusts
  3. Company set-up under the Companies Act, 1956 as amended.
  4. Firm set-up under the Limited Liability Partnership Act, 2008 as amended.
Aug, 10, 2016

Centre to permit fixed term for textile workers- II

  1. Aim: To provide flexibility in hiring and firing
  2. Seasonal: Certain kinds of industrial activities were seasonal in nature and providing permanent employment for many workers is not feasible at all the time
  3. Flexi: Industries such as garment etc. will be benefited and achieve their full growth and employment potential, as it gives employers flexibility in employment
  4. Contractualisation: The textile business is seasonal in nature and workers need to be employed for a shorter duration which was not permitted so far & as a result, the industry resorts to hiring contract labour
  5. The move will help industries hire workers for a fixed term directly without going through the contractor
Aug, 10, 2016

Centre to permit fixed term for textile workers- I

  1. News: Centre has proposed an amendment to Industrial Employment (Standing Orders) Central Rules, 2016 to allow the textiles industry to hire workers on a fixed-term contract
  2. This will apply to factories employing a minimum of 100 workers
  3. Fixed-term workers: Will get the same benefits and terms of employment, including working hours, wages and allowances, as provided to permanent employees in the same factory
  4. Contract worker: Will be entitled to the same statutory benefits passed on to a permanent worker in a proportionate manner
  5. However, the textile industry will not be required to give the fixed-term worker any notice period for terminating the contract or any compensation in the case of retrenchment
  6. Context: The move is a part of the reform package approved by the Union Cabinet in June in a bid to give a boost to the textile sector
Aug, 08, 2016

New weave: skilling through correspondence- II

  1. Focus: Identified weavers’ clusters such as Varanasi, Sivasagar, Murshidabad, Tiruchi, Prakasam and Guntur
  2. Specialised subjects: Secondary and senior secondary level education on design, marketing, business development
  3. For: Handloom weavers and their families
  4. Through: Knowledge sharing, resource optimisation, and synergy of institutions through open schooling
Aug, 08, 2016

New weave: skilling through correspondence- I

  1. Initiative: Weavers can soon access specially designed distance education to hone their traditional skills and turn entrepreneurs
  2. Tie up: The National Institute of Open Schooling (NIOS) under the Ministry of Human Resource Development and the Union Ministry of Textiles
  3. Aim: To provide education to weavers and their children through a specially designed curriculum
  4. Gains: Understanding of the market, designs and e-commerce in a better way
  5. Traditional weavers from different parts of India would understand one another’s styles better
  6. Certification on completion of the courses
Jun, 23, 2016

Tax incentives for textile sector to boost exports

  1. News: Government has announced a Rs 6,000 crore special package for the textile sector, with tax and production incentives
  2. Of the Rs 6,000 crore, Rs 5,500 crore is for an additional 5% duty drawback for garments
  3. The remaining Rs 500 crore will be for additional incentives under Amended Technology Upgradation Funds Scheme (ATUFS)
  4. Under ATUFS, subsidy provided to garmenting units is being increased from 15% to 25%
  5. There are also suggestions aimed at bringing in flexibility in labour laws to increase productivity
Jun, 23, 2016

Textile sector- a global scenario

  1. China is gradually relinquishing its leadership position in the garment sector due to its rising wages and production shifting to high technology sectors
  2. This is leading to garment sector firms shifting to countries including Bangladesh and Vietnam
  3. Economies of scale can happen in India & through changes in schemes and regulations, we can realise full potential of the sector in India
  4. Though India was the leader from the years 1995 to 2000, Bangladesh’s apparel exports exceeded that of India in 2003, while Vietnam surpassed India in 2011
Jun, 23, 2016

Rs. 6,000 crore special package for textiles- II

  1. Outcome based: The package moves from input-based to outcome-based incentives where subsidy will be disbursed only after expected jobs have been created
  2. To ensure increased earnings for workers, overtime hours for workers shall not to exceed 8 hours per week, in line with ILO norms
  3. Fixed term employment will be introduced for the sector due to the seasonal nature of the garment industry
  4. A fixed term workman will be considered at par with permanent workman in terms of working hours, wages, allowanced and other statutory dues
Jun, 23, 2016

Rs. 6,000 crore special package for textiles- I

  1. Context: The Union government announced a Rs. 6,000 crore special package for the textile and apparel sector including several tax and production incentives
  2. Aim: Creating one crore jobs, mostly for women, in the next 3 years
  3. Strategic decision: Would strengthen the Indian textile and apparel sector by improving its cost competitiveness in the global market
  4. Govt has also suggested bringing in flexibility in labour laws to increase productivity
  5. Forecast: Increase in exports by $30 billion and help attract investment worth Rs. 74,000 crore in 3 years
Jun, 11, 2016

Power looms running on solar energy likely to get subsidy from Centre

  1. Context: Centre is considering granting subsidy to power looms operating on solar energy as part of its clean energy initiatives
  2. From August 15, power looms in the country will utilise solar energy for running their operations
  3. Aim: To increase the earning of handloom weavers to Rs 500 per day
  4. Initiatives: More than Rs.6,500 crore has been spent by the textile ministry on various schemes, for promotion and development of the textiles sector
  5. Approximately five lakh additional jobs have been created in the past two years in the textiles sector
Mar, 14, 2016

Expedite FTAs to double textile exports

  1. News: The Textile Ministry has urged the govt to expedite Free Trade Agreements (FTAs) with the US and EU to help double exports
  2. Reason: India’s textile sector is at big disadvantage compared to Bangladesh and Vietnam
  3. As least developed countries, they are exporting at zero duty, but India’s exports are subject to 10-14% duty
  4. Future: Currently, exports stand at Rs.2.5 lakh crore and the vision is to double it in the next 10 years
Jan, 23, 2016

NTC to upgrade technology at mills

  1. The Ministry of Textiles and National Textile Corporation (NTC) are working on a road map for NTC mills to meet market demand and upgrade technology.
  2. Plans include expansion, consolidation of the smaller units, limited modernisation and diversification to products such as technical textiles.
  3. NTC has also taken up short-term modernisation which will see Rs.140 crore investment.
Jan, 23, 2016

Norms for textile tech fund soon

It will look into all issues concerning the corridors including land acquisition.

  1. The Textiles Ministry had given approval for 22 parks under the Scheme for Integrated Textile Parks.
  2. The Union Textile Ministry will issue guidelines for the Amended Technology Upgradation Fund Scheme (ATUFS) in a couple of weeks.
  3. The spinning and ginning segments have not been covered under the revised scheme, which gives thrust to the garment and technical textiles segments.
  4. Six projects had been approved under the Integrated Processing Development Scheme.
  5. Labour laws need amendments and the Ministry is hopeful of bringing them.
Jan, 01, 2016

Green norms proposal may shut units: Textile Ministry

The Environment Ministry has proposed that nearly all textile processing units should eliminate liquid discharges.

  1. It has mandated Zero Liquid Discharge (ZLD) for textile processing units where waste water discharge is over 25 kilo litres/day.
  2. The proposed standards will be too stringent for the domestic textile processing industry.
  3. Reason: Setting up ZLD-effluent treatment plants needs huge initial capital investment as well as high recurring expenditure.
  4. This can trigger a large-scale job losses in textile sector, which is largely unorganised and comprising of SMEs.
Dec, 31, 2015

Cabinet clears amended textile scheme

  1. The Cabinet Committee on Economic Affairs (CCEA) cleared the Amended Technology Upgradation Fund Scheme.
  2. Under the new scheme, apparel, garment and technical textiles will get 15% subsidy on capital investment.
  3. The remaining sub-sectors will be eligible for 10% subsidy, subject to a ceiling of Rs.20 crore.
  4. The amended scheme would give a boost to Make in India in the textiles sector.
  5. The amended scheme will replace the existing Revised Restructured Technology Upgradation Fund Scheme.
Nov, 09, 2015

Textile sector can create 45-50% of direct jobs in rural India

  1. Textile sector has a potential to create 45-50% of direct jobs in the rural India.
  2. The sector will be the driving force behind Skill India and Make in India initiatives.
  3. There is a need for branding Indian Cotton against the world labels, and emphasis on R&D to increase productivity.
  4. The average cotton productivity in India is 528 kg/hectare wherein the same stands 2,196 kg/hectare in Australia and 963 kg/hectare in the U.S.
Aug, 02, 2015

FICCI moots measures to boost textile sector


  1. Suggesting that India could capitalize on China’s decision to decrease export driven model of economy, FICCI suggested Fin Min to invest in textile sector.
  2. FICCI batted for an increase in funds under Technology Upgradation Fund Scheme (TUFS) and interest subvention for exporters.
  3. They also suggested a reduction in taxes and duties for exports in textile sector believing that revenue loss on this account will be compensated by an increase in consumption.
Jul, 01, 2015

New textiles policy aims at 35 million jobs

  1. How? A new draft policy will focus on these things – lack of enough skilled workforce + labour reforms + attracting investments + providing a roadmap for the textile industry.
  2. What else? The Centre is also considering setting up modern apparel garment manufacturing centres in each of the seven NE States.
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