Indian Textile Industry plays a vital role in Indian economy. For the proper functioning and operation of industry it is very essential to have some policies and regulation in place. In India, the Ministry of Textile is responsible for the formulation of policy, planning, execution, development, export promotion and regulation of the Textile Industry and related sectors. There are several other bodies and organizations which help to formulate and execute these policies. All policies should be implemented for the greater development of the whole industry so that it can help to strengthen the economy.

Industry Policy

There are no restrictions regarding location for establishing manufacturing units.
All producers of Clothing and Accessories are exempt from obtaining Industrial License to manufacture. The declicensed undertakings, however, are required to file an Industrial Entrepreneur Memoranda (IEM) in Part 'A' with the Secretariat of Industrial Assistance (SIA), and obtain an acknowledgement. No further approval is required.
After commencement of commercial production, Part B of the IEM has to be filled in. Certain items of clothing are reserved for small-scale industries.