Indian states are in a fierce race to attract investments in the textile and apparel sector, and Rajasthan has stepped up its game with the announcement of a new, incentive-packed textile policy. For the first time, garment manufacturing has been included in the state’s policy framework, signaling Rajasthan’s intent to become a major player in the industry. The policy aims to bring in investments worth ₹40,000 crore (approximately $4.57 billion) over the next five years.
Rajasthan’s initiative comes as states like Tamil Nadu, Telangana, Andhra Pradesh, Maharashtra, Gujarat, Bihar, and Uttar Pradesh also compete with increasingly attractive policies to entice textile and apparel manufacturers. The Rajasthan Cabinet, led by Chief Minister Bhajan Lal Sharma, recently approved the new policy, targeting ₹10,000 crore ($1.14 billion) in garment manufacturing investments.
The policy includes a wide array of incentives such as investment and capital subsidies, turnover-linked benefits, and support for asset creation. Additional top-ups include employment creation boosters, anchor boosts, and regional anchor benefits. Businesses will also benefit from flexible land payment options, tax reimbursements, and subsidies for electricity, freight, green solutions, intellectual property rights (IPR), and the development of ancillary ecosystems. The state will also focus on skill training programs, supporting micro, small, and medium enterprises (MSMEs), and encouraging private textile and apparel park developers.
Rajasthan, already renowned for its traditional handloom and textile handicrafts, is now prioritizing the large-scale production of technical textiles using advanced technology. Research and development incentives have been introduced to promote high-performance technical textiles.
The scheme also emphasizes the development of greenfield private industrial parks to facilitate textile and apparel production. These parks will benefit from the Rajasthan Private Industrial Park Scheme 2025, which provides specific incentives for the textile and apparel sector.
In the run-up to the policy launch, members of the Garment Exporters Association of Rajasthan (GEAR) met with Industries Minister Rajyavardhan Singh Rathore to provide their input. Key requests included integrating Jaipur garment manufacturers into the One District One Product (ODOP) initiative and ensuring their inclusion within the new policy framework.
With its rich textile heritage and new incentives, Rajasthan is positioning itself as a competitive destination for textile investment, aiming to attract global and domestic players alike while boosting employment and economic growth in the state.
