The cotton textile industry’ has 23 preeminent positions "Hi the industrial structure of every country as -it caters to one of the basic necessities of human life, namely, clothing. The Indian cotton textile industry consists of three distinct sectors representing broadly three levels of technology and organization, namely, mills, power looms, and handlooms The handloom sector is the time oldest among them with a long tradition of excellence and unrivaled craftsmanship. The mill sector is over one's hundred and thirty years old and is -the dominant sector in terms of investment, output, and technology. The last to appear on the scene was the power loom sector which over the last three decades has come to occupy a prominent position. The mill sector is the organized sector, while the power looms and handlooms together constitute the decentralized sector. Even today it is one of the premier industries of the country contributing large quantities of industrial output, employment and foreign exchange to the national economy. 

Kerala has a tradition of manufacturing handicrafts with ivory, bamboo, palm leaves and stones and there are 874 power looms in the state. It is home to 458 cooperative societies that promote the handicrafts industry in the state.


  • $53.4 Mn

    Total handloom produced in the state in 2015-16

The Policy aims to promote all sub-branches of the textile manufacturing value chain viz. sericulture (including chaaki and koya production), reeling, handloom, spinning, weaving, knitting, texturising, dyeing, processing, garments (i.e. garment manufacturing, embroidery, embroidered fabrics, made-ups, home textiles, fashion accessories, leather garments and accessories), and all types of technical textiles and jute products. However, the special thrust will be provided to 6 a. Garment & made-ups manufacturing as they generate high direct employment and also act as an engine of growth for upstream manufacturing activities; and b. Segments where the State has an established strength such as embroidered fabrics, ethnic wear, leather garments, and leather accessories. For the establishment of units with one or more of such operations, the strategy is as follows:-

  • Development of infrastructure facilities.
  • Leveraging of natural traditional clusters.
  • Improvement in industrial relations climate in order to attract investment in the textile sector.
  • Incentives to micro, small and medium textile units.
  • Development of ‘Plug and Play’ facilities to enable entrepreneurs to run factories on rent.
  • Fiscal grants and incentives to attract capital investment in the textile sector.
  • Higher incentives to Mega and Super Mega units that are likely to act as anchor units crystallizing the development of the textile industry around them.
  • Caliber and skill development of manpower in order to generate an employable workforce.
  • Research and quality improvement

Kerala Textile Policy