Powerloom Sector Support Strengthened Through GST, Schemes

The last baseline survey for powerlooms, conducted in 2013, revealed the existence of approximately 24 lakh powerlooms, supporting a workforce of around 44 lakh individuals across the country. The State wise details of the number of Powerlooms and manpower as per the last baseline survey is enclosed below. In order to ensure an assessment of latest market dynamics, technology levels, and socio economic aspects of the workers associated with the powerloom sector, the Textiles Committee under Ministry of Textiles has prepared a framework for baseline survey of Powerloom sector. The terms of reference of the study have been finalized and in-principle approval accorded.

A combination of different factors such as product differentiation, demand,
quality, contractual arrangements etc. determine the impact of global tariffs on India’s exports of textiles sector including powerloom exports. The Government is regularly monitoring India’s exports of Textile & Apparel including powerloom exports and tracking of the impact of tariffs.

In the 56^th meeting of the GST Council held on 3^rd September, 2025, the Council recommended significant rationalisation measures to remove distortions, lower production costs, improve global competitiveness and boost demand in the textile sector. The Government has widened the scope of the lower tax slab to provide relief to consumers and the industry. Specifically, the GST Council recommended increasing the threshold for the 5% GST rate on readymade garments and made-ups from 1,000 per piece 2500 per piece. Furthermore, to correct the Inverted Duty Structure (IDS) and enhance competitiveness, the GST rates on Man-Made Fibres(MMF) and MMF yarns have been reduced from 18% and 12% respectively to 5%. This aligns the fibre-yarn-fabric rates, removing long-standing working capital burdens on manufacturers.

For the development of Textile industry particularly small and medium units, clusters as well as the decentralized Powerloom Sector, the Ministry of Textiles through Office of the Textile Commissioner facilitates the provision of services such as Testing lab, training, awareness, design development, troubleshooting, Powerloom sample Survey through 44 Integrated Textile and Apparel Development Centre (ITADC) in major Powerloom Cluster across the country.

In addition, in order to enhance the capacities and competitiveness of decentralized powerloom sector, PowerTex India Scheme was launched on a Pan India basis for the period 2017-20, which was extended upto 2021. The scheme has now been subsumed under Textile Custer Development Scheme (TCDS) and support is extended for completing ongoing projects for meeting committed liabilities only. Further, to ensure holistic development of powerloom sector in the country, a number of initiatives ie. Amended Technology Upgradation Fund Scheme (ATUFS), Group Workshed Scheme, PM Credit Scheme for Powerloom Weavers, In-situ Upgradation Fund Scheme and Comprehensive Powerloom Cluster Development Scheme (CPCDS) have been taken by the Government of India from time to time.

STATEWISE POWERLOOM INDUSTRY AT GLANCE

This information was provided by THE MINISTER OF STATE FOR TEXTILES PABITRA MARGHERITA in a written reply to a question in Rajya Sabha.

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