Rajasthan Rolls Out Rs 10,000 Cr Textile Policy To Boost Jobs And Investment
In a major policy push to position Rajasthan as a leading textile manufacturing hub, the state government has announced the Rajasthan Textile and Apparel Policy 2025. The comprehensive policy aims to attract investments worth Rs 10,000 crore and create up to two lakh new jobs over the next five years, while fostering inclusive, sustainable growth in the sector.
The policy, which will remain in effect until March 31, 2029, outlines a robust roadmap to develop modern infrastructure, encourage technological upgrades, and strengthen the textile and apparel value chain. It seeks to expand Rajasthan’s footprint in both domestic and international markets by supporting the entire spectrum of the industry from natural and man-made fibres to technical textiles, garments, handlooms, leather, footwear, and accessories.
The state government is also placing a strong focus on green manufacturing. The policy offers substantial incentives for the adoption of sustainable technologies, including zero liquid discharge systems, effluent treatment facilities, and water-efficient processes. Enterprises investing in green solutions will be eligible for reimbursements of up to 50% of project costs, capped at Rs 12.5 crore.
To attract investors, the policy introduces a multi-tiered incentive framework based on enterprise size and location. Large, Mega, and Ultra Mega units stand to receive capital subsidies of up to 28% of their eligible fixed capital investment (EFCI), with annual disbursement ceilings reaching Rs 80 crore in later stages. Turnover-linked incentives, ranging from 1.2 to 2% of net sales turnover, are also offered over a ten-year period.
Additional top-up incentives are available for companies generating higher-than-threshold employment, acting as regional anchor units in less developed districts, or investing in thrust areas like technical textiles. The policy provides further support through freight reimbursement of up to Rs 25 lakh per exporting unit annually and skill development subsidies of Rs 4,000 per worker per month for six months.
Rajasthan’s strategic advantages include well-established textile hubs in Bhilwara, Jaipur, Pali, and Balotra, with new zones being developed in Bhilwara and Jodhpur. The state is the country’s largest producer of wool and polyester-viscose suiting and offers excellent connectivity through national highways, major ports like Mundra and JNPT, and dedicated freight corridors.
To ensure smooth implementation, the policy designates the Industries and Commerce Department as the nodal agency. It will be supported by a Project Evaluation Committee (PEC) and a Project Approval Committee (PAC), while a dedicated Project Management Unit (PMU) will oversee promotion, investor facilitation, and monitoring.
Officials stated that the policy reflects Rajasthan’s vision to become a globally competitive textile destination, while promoting inclusive employment opportunities for women, SC/ST, differently-abled, and transgender individuals. The government hopes that the policy will not only generate employment and boost exports, but also drive innovation and sustainability across the sector.
