Haryana’s textile policy aims at integrated development of the textile industry and removing the current mismatch across the value chain. While Haryana accounts for six per cent of national cotton production, it has only one per cent of the spindles and less than one per cent of the national weaving capacity, pointing towards a scope for investments across the value chain in the state.

The policy has introduced measures such as a capital subsidy at 10 per cent for investment in plant and machinery, which will reduce the project cost upon commissioning; an interest subsidy in the range of four to six per cent for all types of new textile units, depending on the area or category of district; and support for establishing textile parks in terms of additional fiscal incentives as well as infrastructure augmentation.

This is in addition to the Scheme for Integrated Textile Parks to support the overall industrial growth in this sector. The textile policy is expected to make Haryana competitive for investments in the textile sector going forward. Maharashtra, Gujarat, Madhya Pradesh, among others, already have textile policies in place for facilitating investments in the sector. These states have benefited over the years from these policies, as is evident from the capacity additions.