After the economic reforms Indian Govt. has taken many initiatives for investment in Textile Industry. The Govt. has liberalized its investment policies for the Textile Industry. Lot of investment has been made for the growth and development of various sectors of Textile Industry. For this purpose Govt. of India has launched many schemes and plans.

The RBI provides approval within 2 weeks to all proposals that involve foreign equity up to 51 % in the manufacturing of textile products.

Investment is increased from Rs.7349.00 crores in 2004-05 to Rs 15,032.00 crores in 2005-06.
During 2003-06 the total investment in Textile and Clothing was around Rs. 42,978.00 crores.
For Technology Upgradation Funds Scheme, Rs 916 billion has been issued for technology upgradation.
Around 26 Apparel Parks are opened in eight states in India, with a total investment of Rs 134 billion.
Industrial Entrepreneurship Memorandum is implemented from 1992 with the investment of 263 billion.
Around a total of US$ 6.67 billion in investment is expected by 2008.
During year 1991-06 Textile Industry, the Foreign Direct Investments inflows worth US$ 910 million have been received. Industry contributes around 1.29% of total FDI inflows in the country.