The union textile ministry plans to launch a new textile policy that would boost the domestic industry, promote cultivation, processing and branding of organic cotton, and set up hubs to manufacture machinery with the help of Foreign Direct Investment (FDI), officials familiar with the matter said.

Textile secretary Ravi Capoor cited a Niti Aayog-led study that found Rs 13,000 crore worth machinery was being imported for the industry. Seven mega textile hubs are expected to be set up across the country as per the policy. The hubs will house end-to-end production, from raw material to export of the finished product. They will include a mega textile park spread over 1,000 hectare. The ministry will also set up a textile research institute in Coimbatore under the policy. The policy will seek a structural shift to make India a man-made fibre (MMF) rather than a cotton-driven industry.

The Union textile ministry also plans to launch Rs 10,000 crore production linked incentive scheme to encourage the industry. The ministry has identified 50 key sectors such as sanitary napkins and winterwear for the scheme with a five-year gestation period. It has removed the anti-dumping duty on purified terephthalic acid and acrylic fibre to boost the MMF sector.