In the midst of reciprocal tariffs with the US, the Government of Rajasthan has put the Textile and Apparel Policy 2025 into effect. The new policy is expected to be crucial in making Rajasthan a cutting-edge hub for the production of textiles and clothing.
Chief Minister Bhajanlal Sharma claimed that one of the main pillars of Rajasthan’s economy is the textile sector, which is among the top five exports from the state. ‘From Fibre to Fashion’ was the state’s vision when the policy was first presented.
The policy covers a wide range of the textile value chain, from the production of natural and synthetic fibres to technical textiles, handlooms, wool processing, leather goods, and footwear manufacturing, he said, adding that clothing manufacturing has been included for the first time in order to increase export potential.
Measures have been taken to guarantee raw material availability, train a trained labour force, solve environmental issues, and construct strong infrastructure, including assistance for logistics.
The approach also provides significant financial incentives to draw in investment and increase exports, he continued.
Asset creating incentives of up to US $ 9.34 million (Rs. 80 crore) per year for ten years, 100 per cent exemption from stamp duty and registration fees on land/building purchases or leases, and 100 per cent exemption from electricity duty on power consumption are all part of the policy’s efforts to support the textile and apparel industries.
This policy also includes provisions for 100 per cent reimbursement of banking, wheeling and gearbox expenses for renewable energy facilities, 50 per cent reimbursement of patent/copyright costs, 100 per cent reimbursement of land conversion fees and 50 per cent reimbursement of up to US $ 1.46 million (Rs. 12.5 crore) under the Green Solution Incentive.
In a similar vein, export units are eligible to receive 50 per cent of the cost of employee training and 25 per cent of freight charges.
According to the official, the new policy is timely because the United States has imposed a reciprocal tariff of 26 per cent on Indian textile imports, which is still less than the tariffs imposed on rival nations like Bangladesh (37 per cent), Vietnam (46 per cent), Cambodia (49 per cent), Pakistan (29 per cent), and China (34 per cent).
Rajasthan, India’s fourth-largest producer of cotton, stands to gain a great deal. It is anticipated that textile hubs like Bhilwara, Jaipur, Pali, and Balotra will take advantage of this chance to increase exports, especially to the US market.
