National Fibre Scheme aims to strengthen India’s fibre industry, enhance global competitiveness and drive sustainable textile growth.
The National Fibre Scheme, introduced in the FY27 Union Budget, is aimed at strengthening India’s fibre industry through policy reforms, domestic capacity building and targeted fiscal support. The initiative focuses on rationalising import duties, encouraging local raw material sourcing and developing structured incentives to enhance competitiveness across fibre categories.
Under the scheme, the government plans to streamline import duties to ensure a balanced playing field between natural and manmade fibres. It also seeks to promote greater domestic sourcing of raw materials used in fibre production while implementing uniform national fiscal incentives. The introduction of fibre labelling regulations is expected to bring improved transparency and standardization across the value chain.
The broader strategy is designed to address structural gaps in the industry and position India more effectively against global textile leaders such as China, Bangladesh and Italy. A fibre-neutral approach will allow balanced development of both natural and synthetic segments, while fiscal measures such as production-linked incentives (PLI) and capital subsidies are being considered to support modernization and sustainable manufacturing practices.
The scheme carries significant importance as India targets a 22% reduction in fibre imports by FY31 and aims to increase domestic production by more than 50%, reaching 22.8 million metric tonnes by 2030–31. Strengthening local production capacity is expected to enhance export potential and reduce dependency on overseas suppliers.
Additional focus areas include higher value addition in jute, wool and silk textiles, full adoption of certified seeds in jute and silk cultivation, and the filing of more than 100 patents related to fibre technologies. These steps are intended to boost innovation and improve quality standards within the sector.
From an economic perspective, the initiative outlines ambitious employment and growth goals. The fibre industry is projected to generate approximately eight million new jobs by 2030, while India’s share in global fibre production is expected to rise from 8% to 12%. The policy also aims to achieve a balanced consumption ratio of 60:40 between manmade and natural fibres, ensuring sustainable and diversified growth of the country’s textile ecosystem.