India has launched schemes for knitwear cluster at Ludhiana, Kolkata and Tirupur which will be developed. The Amended Technology Upgradation Fund Scheme (ATUFS) is being implemented for the textile industry. This is expected to incentivize production, attract investments and generate employment in the textile sector. Production linked additional incentive of 10 per cent is provided under this scheme. A special package is aimed at boosting investment, employment and exports in the garmenting and made-ups sector. Full refund is provided under the Remission of State Levies to exporters for state level taxes. Power Tex India is a comprehensive scheme for the powerloom sector. Silk Samagra is an integrated scheme for development of silk. Jute ICARE increases the income of farmers through different interventions. And there is the North East Region Textile Promotion Scheme (NERTPS).

The textile industry is facing problems like technological obsolescence, high input costs of power and capital, poor access to credit, fragmented units, absence of fiber neutrality etc. These schemes are expected to address these issues/problems. India in addition is formulating a new textile policy. This will cover cotton, silk, jute, wool, manmade fiber, handloom, handicrafts, powerloom, technical textiles, technology and machinery upgradation, infrastructure (spinning, weaving and processing) and human resource development.