Maharashtra Integrated and Sustainable Textile Policy 2023-2028

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Dated: 20.05.2026

Maharashtra Integrated and Sustainable Textile Policy 2023-2028

The Government of Maharashtra has launched the Integrated and Sustainable Textile Policy 2023-2028, aiming to transform the state’s textile sector into a globally competitive, sustainable, and inclusive industry. This article provides a detailed look at the policy’s vision, objectives, incentives, and sector-specific measures.

Introduction: Maharashtra’s Textile Legacy and New Vision

Maharashtra is a powerhouse in India’s textile industry, contributing significantly to the nation’s GDP, industrial production, employment, and exports. The state accounts for over 10% of India’s textile production and employment, with robust infrastructure, skilled manpower, and abundant raw materials like cotton and silk. Recognizing the need to adapt to global trends and sustainability imperatives, the new policy builds on previous initiatives to foster innovation, inclusivity, and environmental responsibility.

Policy Duration and Vision

Effective Period: From June 2023 to March 31, 2028 (extendable by one year if a new policy is not formulated).
Vision: Aligned with the Government of India’s 5F vision (Farm to Fiber to Factory to Fashion to Foreign), the policy seeks to integrate the entire textile value chain, promote sustainable practices, and empower all stakeholders through the 3-R model: Reduce, Reuse, Recycle.

Key Objectives

Increase Cotton Processing: Raise in-house cotton processing from 30% to 80% within five years.
Attract Investment: Target INR 25,000 crore in investments and create 500,000 jobs.
Promote Women Empowerment: Offer additional incentives for women-led units and gender balance.
Skill Development: Support training and capacity building for a skilled workforce.
Technical Textile Parks: Develop six parks to boost technical textiles.
Research & Innovation: Encourage eco-friendly technologies and R&D.
Ease of Doing Business: Leverage IT for streamlined operations.
Traditional Sector Support: Preserve and promote Maharashtra’s textile heritage.

Zonal Approach

The state is divided into four zones based on textile development and resource availability, ensuring regionally balanced growth and tailored incentives.

Sector-Wise Incentives and Measures

1. Ginning and Pressing

Capital Subsidy: Up to 55% for mega enterprises in Zone 1; additional 5% for SC/ST/minority/women-led units.
Electricity Subsidy: Subsidized rates for two years, with solar plant incentives thereafter.

2. Spinning (Cooperative and Private)

Share Capital: Government equity support varies by zone.
Capital Investment Subsidy: Up to 55% for mega projects.
Technology Upgradation: MAHA-TUFS offers up to 40% subsidy on eligible machinery.

3. Powerloom (Cooperative and Private)

Similar incentives as spinning sector.
Special focus on modern technology and solar energy adoption.

4. Handloom

Cluster Development: Support for urban haats and infrastructure.
Raw Material Subsidy: 30% price subsidy on yarn.
Welfare Schemes: Insurance, free electricity (up to 200 units/month), and online marketing support.

5. Processing

Capital Subsidy: Up to 55% for mega enterprises.
Green Technologies: 50% subsidy for Effluent Treatment Plants (ETP) and Zero Liquid Discharge (ZLD) systems.

6. Knitting, Hosiery, Garmenting

Capital Subsidy: Up to 55% for mega projects.
Support for decentralized garmenting units and design facilities.

7. Sericulture

Farming Support: Expansion of mulberry and tasar silk farming, group farming, and private sector involvement.
Marketing: Establishment of cocoon markets and silk exchange centers.
Processing and Training: Cluster development, training centers, and state/central subsidies for equipment.

8. Traditional Textiles

Festival Allowance: Annual grants for registered weavers.
Design Awards: Recognition and cash prizes for best designs.
Old Age Pension: Social security for senior weavers.

9. Wool Sector

Capital Subsidy: Same as spinning and processing sectors.
Pilot Processing Projects: Public-private partnerships for Deccan wool.

10. Non-Conventional and Synthetic Yarn

Capital Subsidy: Up to 55% for mega projects.
Research Support: Focus on bamboo, banana, and other alternative fibers.

11. Technical Textiles

Individual Units: Up to 55% capital subsidy for mega projects.
Technical Textile Parks: Six parks with incentives for infrastructure, ETP, ZLD, solar plants, and R&D.

Promoting Green and Sustainable Production

ETP and ZLD: 50% subsidy for pollution control infrastructure.
Solar Plants: Subsidies for up to 4MW capacity.
Recycling Projects: Support for 12 textile recycling units across the state.

Textile Parks and Infrastructure

Financial Assistance: Central and state support for common infrastructure in textile parks.
Skill Development: Upgrading and establishing training centers, MoUs with leading institutes, and special focus on women’s employment.

Marketing and Capacity Building

Brand Promotion: Handloom Mark, Silk Mark, and India Handloom Brand.
Exhibitions: Four annual exhibitions outside Maharashtra.
Skill Training: Programs through Weaver Seva Kendras, ITIs, and partnerships with industry leaders.

Administrative Reforms and Implementation

Maharashtra State Textiles Development Corporation (MSTDC): New statutory body to oversee sector development.
Project Management Agency: Professional team for policy implementation and investor support.

Conclusion

The Integrated and Sustainable Textile Policy 2023-2028 positions Maharashtra as a leader in sustainable, inclusive, and innovative textile manufacturing. By offering targeted incentives, fostering skill development, and promoting green technologies, the policy aims to secure the future of the textile sector while preserving its rich heritage.

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Source: Government of Maharashtra, Co-operation, Marketing and Textile Department

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