Jharkhand Textile Policy

Jharkhand, known for its mineral wealth and tribal culture, is emerging as a hub for industrial development. Among its many developmental strides, the Jharkhand Textile Policy has garnered significant attention for its focus on reviving the textile and apparel industry, creating employment, and boosting rural income. With a vision to promote sustainable and inclusive industrial growth, the state government has introduced various schemes and incentives to attract investments in the textile, apparel, sericulture, and handloom sectors.

Vision and Objectives of Jharkhand Textile Policy

The Jharkhand Textile Policy aims to transform the state into a leading destination for textile investment by:

Encouraging value addition in textile manufacturing.
Generating large-scale employment, particularly for women.
Promoting skill development in rural and semi-urban areas.
Supporting traditional industries like handlooms and sericulture.
Establishing a conducive environment for public-private partnerships (PPPs).

Key Features of the Policy

1. Capital Investment Subsidy

To encourage investments, the policy provides up to 35% capital investment subsidy for eligible projects in the textile and apparel sector. This helps entrepreneurs lower their upfront investment costs.

2. Interest Subsidy

Interest subsidy of up to 7% per annum for five years is available to MSMEs operating in the textile sector. This allows better credit access and improves project viability.

3. Employment Incentives

5,000 per worker every year for three years, provided the worker remains employed continuously. Women and tribal teenagers are given priority while hiring.

4. Land Subsidy and Infrastructure Support

Industrial parks and textile clusters in Jharkhand offer subsidized land and plug-and-play infrastructure to textile units. Parks are being developed in Ranchi, Deoghar, Giridih, and Dumka.

5. Power Tariff Subsidy

To minimize operational expenses, textile plants are eligible for a power tariff subsidy of Rs.2 per unit for five years. This is particularly beneficial for power-intensive spinning and dyeing units.

Focus Areas of Development

1. Sericulture and Silk Production

Jharkhand is one of India’s major producers of Tasar silk, and the policy promotes silk farming through incentives for rearing, reeling, and weaving. The state also facilitates market linkages and e-commerce access for rural silk producers.

2. Handloom and Khadi Promotion

Handloom weaving is a traditional occupation in Jharkhand’s tribal regions. The government provides loan upgradation subsidies, raw material support, and marketing assistance to revive this industry.

3. Apparel and Garment Manufacturing

The policy encourages the setting up of garment manufacturing units and provides support for modern machinery, training centers, and export facilitation. Private players are invited to establish readymade garment hubs in textile parks.

Skill Development Initiatives

A key factor in the textile policy’s success is the availability of skilled workers.To address this, the Jharkhand government collaborates with Skill India Mission and private partners to train youth in spinning, weaving, tailoring, dyeing, and finishing processes.

Industrial Training Institutes (ITIs) and Textile Training Centers have been upgraded to offer industry-relevant curriculum.
Financial incentives are provided to training providers under the Employment Linked Training Program (ELTP).

Ease of Doing Business in Jharkhand

The state offers a robust single-window clearance system for investors in the textile sector. Other key initiatives include:

Online land allotment and building approvals.
Labour reforms to encourage flexible hiring.
Incentives under the Jharkhand Industrial and Investment Promotion Policy.

These reforms ensure that textile investors experience minimal regulatory bottlenecks and faster project implementation.

Environmental Sustainability and Green Initiatives

To promote eco-friendly industrial practices, the textile policy supports:

Zero liquid discharge (ZLD) compliant units.
Incentives for solar-powered looms and dyeing units.
Waste management subsidies for textile effluents.

These initiatives align with national goals of sustainable development and reduce the environmental footprint of the textile sector.

Success Stories and Case Studies

Several domestic and international investors have already begun setting up operations under the Jharkhand Textile Policy. Textile parks in Deoghar and Ranchi have seen promising developments, generating employment for thousands of rural youth and women.

In addition, cooperative societies in sericulture and handloom clusters in Dumka have started selling silk sarees and fabrics online, improving their income and market reach.

Challenges and the Way Forward

While the policy has laid a strong foundation, certain challenges remain:

Logistics and transport costs need to be optimized.
Improved integration with domestic and international textile supply chains is crucial.
Timely disbursement of subsidies and redressal mechanisms must be strengthened.

With continuous policy evolution and stakeholder engagement, Jharkhand is well on its way to becoming a textile powerhouse in eastern India.

The Final Thought:

Navigating government policies, subsidy applications, and compliance requirements can be overwhelming for entrepreneurs. That’s where Cretum Advisory comes in.

At Cretum Advisory, we help textile startups, MSMEs, and large enterprises make the most of the Jharkhand Textile Policy. Our services include:

Feasibility analysis and project report preparation.
End-to-end assistance in subsidy applications.
Policy compliance, documentation, and coordination with government departments.
Business registration, licenses, and infrastructure support.

Whether you’re starting a new unit or expanding your textile business in Jharkhand, Cretum Advisory is your one-stop compliance and policy advisory partner. We offered services like- GST Registration, Startup Consulting, Accounting & Advisory, Secretarial & Company Law Services, UAE & International Tax Services, and Transaction & M&A Advisory For tailored guidance, reach out to us at 📩 info@cretumadvisory.com.

Frequently Asked Questions (FAQs) – Jharkhand Textile Policy

1. What is the Jharkhand Textile Policy?

It’s a state initiative to promote textiles, sericulture, handlooms, and apparel manufacturing through incentives and infrastructure.

2. Who can benefit from this policy?

MSMEs, startups, handloom cooperatives, and large textile units looking to invest or expand in Jharkhand are eligible.

3. What financial incentives are offered?

Subsidies include capital investment, interest, power tariff, and employment-linked benefits.

4. What are the main focus areas?

Silk, handlooms, apparel, employment generation, and textile parks are key focus areas.

5. How is the handloom and silk sector supported?

Support includes loom upgrades, raw material aid, training, and market linkage assistance.

6. What infrastructure is provided under this policy?

Textile parks featuring plug-and-play units and modern amenities have been developed in significant districts.

7. How to apply for the incentives?

Businesses can apply via the state’s Single Window Clearance Portal with a detailed project proposal.