Textiles ministry plans ₹1,000-cr corpus to boost silk production, exports

New Delhi: India is drawing up a plan to boost production and exports of high-value silk, as it aims to cut reliance on imported raw silk in a sector that is a key source of livelihoods and foreign exchange earnings, two people aware of the matter said.

The textiles ministry’s 1,000-crore plan involves expanding India’s silk economy through higher domestic production, technology upgrades and quality improvement to boost incomes of 9.84 million farmers, reelers, weavers and artisans dependent on the sector.

Under the plan, the government aims to increase raw silk output to 44,500 tonnes in FY27, with productivity targeted at 116 kg per hectare, said the first of the two people cited earlier, both of whom spoke on condition of anonymity.

Entire silk ecosystem covered

The new corpus will help strengthen the sericulture value chain, including silkworm seed production, cocoon cultivation, reeling, weaving and branding of silk products.

The move assumes significance at a time when the government is focusing on reducing imports to conserve foreign exchange and stem the slide of the domestic currency. The rupee has declined by more than 5% against the dollar since the began on 28 February, according to Bloomberg data. It was also one of the world’s poorest-performing currencies in FY26, falling about 11% against the dollar.

“It is a labour-intensive sector, and the government is working towards expanding its manufacturing footprint so that a larger number of artisans, reelers and workers can find employment in the sector,” said the second person. “Silk is a high-value product, and higher exports can fetch better returns for the country, especially as global demand for silk remains strong.”



India is the second-largest producer and consumer of silk globally.

Queries sent to the spokesperson of the ministry of textiles and chief executive of the Central Silk Board remained unanswered till the press time.

As per the Central Silk Board data, India’s silk exports have seen steady growth over the past few years. Latest available data showed India’s silk exports rose nearly a fifth from a year prior to $332.72 million during 10 months (April-January) of FY26. The figure stood at $244.27 million in FY24, and $220.58 million in FY23. Overall, silk exports have increased by nearly 34% between FY22 and FY26.

V. Balasubramaniyan, president of the Silk Association of India, told Mint that to push silk exports, the government needs to focus more on the reeling sector, which converts cocoons into high-quality silk yarn. “Before weaving, the industry needs good-quality silk yarn, and for that, more support has to be given to reelers.”

“ is a luxury product and global demand remains strong, but the market is largely dominated by China. With the right encouragement and policy support, India has the potential to increase its presence in the global silk trade. Since silk still accounts for a very small share of India’s overall exports, there is significant scope for expansion,” he said.

Imports of silk and silk products, after witnessing a sharp rise in FY23, have gradually declined over the past three years, indicating a possible improvement in domestic availability and a growing focus on reducing import dependence. Imports stood at $102.73 million in FY21, rising sharply to $153.14 million in FY22 and $284.85 million in FY23, before easing to $228.99 million in FY24, $184.70 million in FY25 and $184.45 million in FY26 (April-January).

The country’s raw silk production increased from 33,770 tonnes in FY21 to 41,121 metric tonnes in FY25. It stood at 35,104 tonnes during April-January (10 months) of financial year 2026.

“In the global silk industry, countries like Japan and South Korea have largely moved out of silk production, leaving China and India as the major players. Incentives should be provided for the import of modern machinery, at the same time encouraging domestic manufacturing of such machines to strengthen India’s silk value chain,” Balasubramaniyan said.

Karnataka is the country’s largest raw silk-producing state, with Andhra Pradesh, Tamil Nadu, Telangana and West Bengal being other major contributors.

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