Perceiving the role of the Textile Industry in providing one of the most basic needs of people and the importance of its sustained growth for improving quality of life;Recognising its unique position as a self-reliant industry, from the production of raw materials to the delivery of finished products, with substantial value-addition at each stage of processing; and its major contribution to the country's economy; Realising its vast potential for creation of employment opportunities in the agricultural, industrial, organised and decentralised sectors & rural and urban areas, particularly for women and the disadvantaged; Acknowledging the tremendous impetus provided by the Textile Policy of 1985 to the economy, resulting over these years in compounded annual growth rates of 7.13% in cloth production, 3.6 % in the per capita availability of fabrics; and 13.32% in the export of textiles; raising the share of textiles to 13% of value added domestic manufacturing of the country; and to one third of the export earnings of the country, Taking note of the new challenges and opportunities presented by the changing global environment, particularly the initiation of the process of gradual phasing out of quantitative restrictions on imports and the lowering of tariff levels for an integration of the world textile and clothing markets by end 2004, and the need for a focussed approach to maximizing opportunities and strengths inherent in the situation; Having studied the issues and problems facing the sector, the views of a wide range of stakeholders, and the recommendations of the Expert Committee set up for this purpose;
Deciding to redefine the goals and objectives, focus on thrust areas and sharpen strategy in tune with the times, the National Textile Policy - 2000 is enunciated as follows:

Endowed as the Indian Textile Industry is with multifaceted advantages, it shall be the policy of the Government to develop a strong and vibrant industry that can

Produce cloth of good quality at acceptable prices to meet the growing needs of the people;

Increasingly contribute to the provision of sustainable employment and the economic growth of the nation; and

Compete with confidence for an increasing share of the global market.

The objectives of the policy are to

Facilitate the Textile Industry to attain and sustain a pre-eminent global standing in the manufacture and export of clothing;

Equip the Industry to withstand pressures of import penetration and maintain a dominant presence in the domestic market;

Liberalise controls and regulations so that the different segments of the textile industry are enabled to perform in a greater competitive environment;

Enable the industry to build world class state-of-the-art manufacturing capabilities in conformity with environmental standards, and for this purpose to encourage both Foreign Direct Investment as well as research and development in the sector;

Develop a strong multi-fibre base with thrust of product upgradation and diversification;

Sustain and strengthen the traditional knowledge, skills and capabilities of our weavers and craftspeople;

Enrich human resource skills and capabilities, with special emphasis on those working in the decentralised sectors of the Industry; and for this purpose to revitalise the Institutional structure;

Expand productive employment by enabling the growth of the industry, with particular effort directed to enhancing the benefits to the north east region;

Make Information Technology (IT), an integral part of the entire value chain of textile production and thereby facilitate the industry to achieve international standards in terms of quality, design and marketing and;

Involve and ensure the active co-operation and partnership of the State Governments, Financial Institutions, Entrepreneurs, Farmers and Non-Governmental Organisations in the fulfillment of these objectives.