India’s powerloom industry—one of the largest employment generators in the textile value chain—is set to undergo a comprehensive reassessment as the Ministry of Textiles prepares to update its baseline data for the first time in more than a decade.
The last nationwide baseline survey, carried out in 2013, estimated the presence of around 24 lakh powerlooms across the country, supporting a workforce of nearly 44 lakh people. Recognising the need to capture current market realities, technology adoption levels, and the socio-economic conditions of workers, the Textiles Committee under the Ministry of Textiles has now drawn up a fresh framework for a new baseline survey of the powerloom sector. The terms of reference have been finalised, and in-principle approval has already been accorded.
Against a backdrop of evolving global trade dynamics, the Government continues to closely track exports of textiles and apparel, including powerloom products. The impact of international tariffs, officials note, depends on a mix of factors such as product differentiation, demand, quality, and contractual arrangements. Continuous monitoring is underway to assess how these variables influence India’s powerloom exports.
A major policy push came through the 56th meeting of the GST Council held on 3rd September, 2025, which recommended far-reaching rationalisation measures to correct distortions, reduce production costs, and improve the sector’s global competitiveness. To provide relief to both consumers and manufacturers, the scope of the lower tax slab was expanded by raising the threshold for the 5% GST rate on readymade garments and made-ups from ₹1,000 per piece to ₹2,500 per piece. Further, to address the long-standing Inverted Duty Structure (IDS), GST rates on Man-Made Fibres (MMF) and MMF yarns were cut from 18% and 12% respectively to 5%, aligning fibre–yarn–fabric rates and easing working capital pressures on producers.
For decentralised powerloom units and small and medium enterprises, the Ministry, through the Office of the Textile Commissioner, continues to extend on-ground support via 44 Integrated Textile and Apparel Development Centres (ITADCs) located in major powerloom clusters. These centres facilitate access to testing laboratories, training, awareness programmes, design development, troubleshooting support, and conduct powerloom sample surveys to strengthen cluster-level capabilities.
Capacity building has also been pursued through the PowerTex India Scheme, launched on a pan-India basis for 2017–20 and later extended up to 2021. The scheme has since been subsumed under the Textile Cluster Development Scheme (TCDS), with support now focused on completing ongoing projects and meeting committed liabilities. In addition, a suite of initiatives has been rolled out over time to ensure holistic development of the sector, including the Amended Technology Upgradation Fund Scheme (ATUFS), Group Workshed Scheme, PM Credit Scheme for Powerloom Weavers, In-situ Upgradation Fund Scheme, and the Comprehensive Powerloom Cluster Development Scheme (CPCDS).
The 2013 baseline survey also provides a snapshot of the sector’s geographic spread. All-India, the powerloom industry comprised 3,85,596 units, operating 24,86,418 looms, employing 44,18,240 workers, including 1,03,141 shuttleless looms. The western region, led by Maharashtra and Gujarat, accounted for the largest concentration, while Tamil Nadu dominated in the south. Northern and eastern clusters, spread across states such as Uttar Pradesh, Rajasthan, West Bengal, Bihar, and Assam, also formed significant production bases, highlighting the sector’s deep integration into regional economies.
“This information was provided by THE MINISTER OF STATE FOR TEXTILES SHRI PABITRA MARGHERITA in a written reply to a question in Rajya Sabha today.”