India will soon have a simplified textile policy. The new policy is aimed at increasing production and productivity of the textile sector, generating more employment, bringing down the cost of production, penetrating into newer markets, and introducing more value added products and focusing both on exports and domestic markets.

There may be some relaxation in labor laws such as allowing women to work at night. Some kind of tax incentives may be provided to weavers to make the sector attractive. This also includes tax holidays and interest subvention.

Most incentives or subsidies given now are production related. Those related to processing and skilling would be continued. Exports from India are expected to become unviable after 2017 as India is a signatory to WTO guidelines. There will be a review of subsidies and concessions. Some will be continued and some will be phased out. There may be production-related sops.

The Textile Upgradation Fund scheme has been revised. The growth of Indian textile sector has been hampered by factors such as high cost of production, sudden spurt in interest rates on working capital and an increase in labor wages. The industry has sought modifications in contract laws.