Rajasthan implements Textile and Apparel Policy 2025 amid US reciprocal tariffs

IANS April 5, 2025 293 views

Rajasthan has unveiled its innovative Textile and Apparel Policy 2025, strategically designed to transform the state's textile sector. The policy aims to establish Rajasthan as a modern textile manufacturing center, focusing on comprehensive value chain development and export potential. By offering financial incentives and addressing infrastructure challenges, the government hopes to create over 200,000 jobs in the sector. With Rajasthan being India's fourth-largest cotton producer, the policy is particularly well-timed to capitalize on evolving global trade dynamics.

"The policy is set to become a catalyst for industry growth and employment" - Rajasthan Government Official
Jaipur, April 5: The Rajasthan government on Saturday implemented the Textile and Apparel Policy 2025 amid US reciprocal tariffs.

Key Points

1

Targets two lakh new jobs in textile sector

2

Covers entire textile value chain

3

Offers substantial financial incentives

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Aims to leverage US market opportunities

The new policy is poised to play a pivotal role in establishing Rajasthan as a modern centre for textile and apparel manufacturing.

An official claimed that in light of evolving global trade dynamics - particularly the recent reciprocal tariffs imposed by the US - the policy is expected to be a game-changer for textile exporters in the state.

He said that for the first time, garment manufacturing has been included in the policy to boost export potential, adding that the policy covers a broad spectrum of the textile value chain, from the production of natural and synthetic fibers to technical textiles, handlooms, wool processing, leather goods, and footwear manufacturing.

He said that provisions have been made to ensure the availability of raw materials, develop a skilled workforce, address environmental concerns, and build robust infrastructure, including logistics support.

He added that the policy also offers substantial financial incentives to attract investment and boost exports.

He said that to promote industrial growth in the textile and apparel sector, the policy includes incentives, like asset creation incentives, stamp duty and registration fee and many more.

The official said that the new policy comes at a critical time as the U.S. has imposed a 26 per cent reciprocal tariff on Indian textile imports, still lower than those on competing countries such as Bangladesh (37 per cent), Vietnam (46 per cent), Cambodia (49 per cent), Pakistan (29 per cent), and China (34 per cent).

Rajasthan, being the fourth-largest cotton-producing state in India, stands to benefit significantly. Textile hubs like Bhilwara, Jaipur, Pali, and Balotra are expected to leverage this opportunity to expand exports, particularly to the U.S. market.

The official added that with an abundant skilled workforce and favourable policy support, the Rajasthan Textile and Apparel Policy-2025 is set to become a catalyst for industry growth and employment, with a target of creating over two lakh new jobs.

Reader Comments

P
Priya K.
This is such a positive move for Rajasthan! 👏 The textile industry has so much potential here with our skilled artisans and cotton production. Hope this creates more opportunities for local workers.
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Rahul S.
Interesting policy but I wonder how they'll address the environmental impact. Textile manufacturing can be pretty polluting. Hope they've included strong sustainability measures.
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Meena P.
My brother works in Bhilwara's textile industry. He says everyone's really excited about this news! Finally some government support for this sector.
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Arjun M.
The timing couldn't be better with the US tariff situation. Rajasthan might actually gain market share from other countries facing higher tariffs. Smart move by the government!
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Sunita R.
I appreciate the inclusion of garment manufacturing - that's where the real value addition happens. Hope this means better quality jobs rather than just more jobs.
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Vikram J.
The policy looks comprehensive on paper, but implementation will be key. Rajasthan has had issues with policy execution in the past. Hope this time it's different.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Tags:
Rajasthan Textile Policy US Tariffs Textile Manufacturing Indian Exports Bhilwara Textile Hub
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