The Indian government is considering a ₹40,000 crore investment plan to modernise traditional textile and garment clusters over five years, aiming to improve manufacturing efficiency, reduce costs and strengthen export competitiveness.

The proposed Textile Expansion and Employment (TEEM) Scheme is part of a broader strategy to expand India's textile and apparel industry, attract investment and capitalise on recent free trade agreements with major markets, including the United Kingdom and the European Union.

The plan focuses on upgrading infrastructure and introducing modern technologies across existing textile clusters. These improvements could help manufacturers enhance productivity, improve operational efficiency and compete more effectively in international markets.

According to reports, the Textile Ministry's proposal has been examined by the Expenditure Finance Committee, an interministerial body responsible for reviewing major spending proposals. The proposal is expected to be placed before the Union Cabinet for approval.

India's textile and garment sector is a major source of employment after agriculture and plays an important role in manufacturing and exports. If approved, the proposed scheme could support industrial modernisation, generate employment opportunities and strengthen India's position in the global textile supply chain.