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Textile and Apparel Policy 2015-2020

Key Highlights

  • India’s 2nd largest producer of cotton and raw silk
  • Strong skill base – legacy of handlooms and handicrafts
  • Well-developed spinning and processing sector
  • Unique integrated apparel city in Visakhapatnam,with an innovative ‘Fibre to Store’ concept
  • Strong presence of textile-based industries in Guntur, Chittoor, Kadapa, and Kurnool

Textiles & Apparel Policy

Key Policy Targets 2020

Key Initiatives

  • Government to provide land for establishing Textile & Apparel Parks (as per the industrial development policy)
  • Assistance to Apparel Training Institutions and trainees
  • Focus on textile-based industries such as Ginning & Pressing, Cotton Spinning, Weaving, Dyeing & Processing, Knitting, Garment/Made-ups, Machine Carpeting, Machine Embroidery, and any other activities/processes like crimping, texturising, twisting, winding, sizing, etc. within the textile value chain

major clusters / parks

  • Brandix India Apparel City (BIAC) - A unique, integrated apparel supply chain city spread over 1,000 acres in the port city of Visakhapatnam
  • Integrated Textile Park (ITP) coming up at Edlapadu on Guntur-Chennai National Highway is expected to give fillip to textile industry
  • Chennai-Bengaluru Industrial Corridor (CBIC) will foster new economic centres

Key Fiscal Incentives



INTEREST SUBSIDY To be capped at 12.5% per annum, after taking into account assistance from all sources (centrally sponsored TUF scheme, industrial policy of the State, etc.)
VAT/CST/SGST CONCESSION Refund for VAT/CST/SGST paid by the unit on purchases of intermediate product/raw material; VAT/CST/SGST reimbursement is available for tax collected on end product/intermediate product, upto 100% of eligible fixed capital investment in plant and machinery
POWER TARIFF SUBSIDY ₹1/unit for Spinning and Modern Ginning and ₹1.50/unit for others (including technical textiles) for 5 years
STAMP DUTY 100% reimbursement on land lease for setting up Textile and Apparel Parks
SETTING UP COMMON INFRASTRUCTURE Upto 50% of expenditure incurred for setting up common infrastructure in Textile and Apparel Parks, upto maximum of ₹15 crore/₹30 crore for Composite Park
INVESTMENT IN TECHNOLOGY Upto 50% financial assistance for investment in technology, limited to ₹25 lakh per process/product
CAPITAL SUBSIDY Upto ₹10 crore for standalone garmenting and apparel units

Existing Partners

Upcoming projects