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Government Launches Initiative to Expand Domestic Textile Manufacturing

Government Launches Initiative to Expand Domestic Textile Manufacturing
Textiles among six priority sectors selected under the government’s Make in India 2.0 initiative to strengthen domestic manufacturing and reduce import dependence.

The Government of India has constituted sector-specific working groups to identify products with strong potential for domestic manufacturing, with textiles emerging as one of the key focus sectors. The initiative is part of the broader “Make in India 2.0” strategy aimed at reducing import dependence, strengthening local manufacturing capabilities, and enhancing India’s global competitiveness.

Under the programme, six sectoral working groups have been established to identify up to 100 products that are either not manufactured in India or are produced in insufficient quantities. These groups will assess supply chain gaps, domestic demand, and manufacturing opportunities to recommend products that can be developed locally.

The textiles sector has been included among the priority industries due to its significant contribution to employment, exports, and industrial growth. The working group focused on textiles is expected to examine opportunities across various segments, including apparel, technical textiles, man-made fibre products, and other value-added textile categories where India can expand domestic production capabilities.

Government officials have indicated that the exercise is intended to strengthen India’s manufacturing ecosystem by identifying areas where imports can be substituted with locally produced alternatives. The initiative is also expected to support investment, encourage technology adoption, and create new opportunities for domestic manufacturers.

The move complements ongoing efforts by the government to boost textile manufacturing through policy measures such as the Production Linked Incentive (PLI) Scheme, which has already attracted investments across man-made fibre apparel, fabrics, and technical textiles segments.

Industry stakeholders are expected to play an active role in the working groups, helping identify product categories with high growth potential and recommending measures to enhance local production capacity. The findings of these groups are likely to contribute to a stronger domestic manufacturing base while supporting India’s ambition of becoming a major global manufacturing hub.

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