Rajasthan Textile & Apparel Policy-2025: Boosting Exports & Jobs

Jaipur, Apr 5 (PTI) Chief Minister Bhajanlal Sharma has implemented the Rajasthan Textile and Apparel Policy-2025 in the state, an important initiative in establishing the state as a new centre of modern textile and apparel manufacturing.

He said the textile industry, which is among the top five items of total exports from Rajasthan, is a strong pillar of the state's economy. The policy has been introduced with the vision of 'From Fibre to Fashion' in the state.

"This policy is going to prove to be a game changer for the textile exporters of Rajasthan in the changing global scenario after the implementation of reciprocal tariff by the US," Sharma said.

In a statement, he said in order to encourage exporters, the garment manufacturing sector has also been included for the first time in the state in the Rajasthan Textile and Apparel Policy-2025.

This policy also includes related sectors like increasing the production of natural and artificial fibres, technical textiles and textile manufacturing, handloom, wool processing, leather products, footwear.

In this policy, provisions have been made for availability of raw materials for textile entrepreneurs, skilled workforce, solution to environmental challenges and development of infrastructure, including logistics and adequate and attractive financial incentives for export promotion.

Under the new Rajasthan Textile and Apparel Policy, on one hand, to encourage the industries in the textile and apparel sector, asset creation incentive of up to Rs 80 crore annually for 10 years, 100 per cent exemption in stamp duty and registration fee on land/building purchase or lease, 100 per cent electricity duty exemption on power consumption will be provided.

On the other hand, keeping in mind the environmental problems, provisions have been made in this policy for 50 per cent reimbursement up to Rs 12.5 crore under Green Solution Incentive, 100 per cent of banking, wheeling and transmission charges for renewable energy plants, 50 per cent of patent/copyright cost and 100 per cent reimbursement of land conversion fee.

Similarly, provision has been made for 25 per cent reimbursement on freight charge and 50 per cent of personnel training cost to export units.

After the recent imposition of reciprocal tariff by the US, the economic scenario at the global level is undergoing continuous changes.

About 27 per cent reciprocal tariff has been imposed by the US on Indian textile imports, which is lower than the competing countries in this sector such as Bangladesh (37 per cent), Vietnam (46 per cent), Cambodia (49 per cent), Pakistan (29 per cent), and China (34 per cent).

Sharma said Rajasthan is the fourth largest cotton producing state in the country and in the long run, this can prove to be favourable for textile manufacturers of textile hubs like Bhilwara, Jaipur, Pali and Balotra to increase textile exports to the US.

He added that the objective of this policy is to strengthen the textile value chain through modern infrastructure and technological upgrade.

Under the policy, special attention has been given to inclusive development and emphasis has also been laid on investment of Rs 10,000 crore and creation of 2 lakh jobs in this sector. Through this policy, along with developing five new textile parks, assistance will be provided to new and expanding garment manufacturing units.