The Indian government has significantly escalated the financial autonomy of the Central Silk Board (CSB), raising its project approval limit to ₹1 crore from the previous ₹50 lakh. This strategic amendment, enacted through changes to Rule 22 of the Central Silk Board Rules, 1955, marks a pivotal shift aimed at dismantling bureaucratic bottlenecks, accelerating project implementation, and bolstering India’s position in the global silk market. The move is anticipated to inject much-needed efficiency into a sector that is a cornerstone of rural livelihoods and a vital contributor to the nation’s textile exports.
For decades, the ₹50 lakh ceiling had constrained the CSB’s operational agility, necessitating protracted approval processes for any project exceeding this relatively modest sum. As project costs for critical infrastructure development, technological upgrades, and advanced research initiatives inevitably climbed due to inflation and evolving industry standards, this limit became an increasingly severe impediment. Proposals often languished through multiple layers of ministerial review, causing significant delays in everything from establishing modern reeling units to implementing crucial disease control programmes and upgrading testing facilities. Industry stakeholders and government officials alike acknowledge that this administrative inertia directly hampered the sector’s ability to adapt, innovate, and compete effectively on a global scale. The doubling of the approval limit empowers the CSB to make swifter, more localized decisions, thereby streamlining the execution of its extensive portfolio of schemes designed to support the entire silk value chain.
The sericulture sector in India is far more than an agricultural or industrial segment; it is a sprawling ecosystem supporting nearly 9.76 million people, predominantly in rural and semi-urban areas. This makes it one of the largest employers in the country’s unorganized sector, playing a crucial role in poverty alleviation and women’s empowerment, as many tasks, from silkworm rearing to weaving, are often undertaken by women. The ripple effects of this policy change are therefore expected to extend deep into the socio-economic fabric of silk-producing regions. Faster project approvals translate into quicker access to improved seed varieties, modern machinery, better training facilities, and enhanced market linkages for these millions of stakeholders, from the silkworm rearer in Karnataka to the handloom weaver in Assam.
India holds a unique and prominent position in the global silk landscape, being the second-largest producer of silk globally, after China, and notably, the only country producing all four major varieties of natural silk: mulberry, tasar, eri, and muga. While mulberry silk constitutes the largest share of India’s production, the diversity of its silk portfolio offers a distinct competitive advantage. In the fiscal year 2025, India’s silk production reached an impressive 41,121 metric tonnes, a notable increase from 38,913 metric tonnes in FY24, reflecting a consistent growth trajectory. This growth underscores the inherent potential of the sector, which the current policy aims to unlock further. Major silk-producing states like Karnataka, Andhra Pradesh, Tamil Nadu, West Bengal, Assam, and Jammu & Kashmir are particularly poised to benefit, as they represent the core hubs of sericulture activities and associated industries.
The government’s decision aligns with a broader national agenda to boost value-added textile exports and reduce reliance on imported raw silk. In FY25, India’s exports of silk and silk products amounted to $246 million. While this figure represents a significant contribution to foreign exchange earnings, experts argue that India’s share in the global silk trade remains modest, especially given its production capabilities. Key export categories include raw silk, natural silk yarn, fabrics and made-ups, readymade garments, silk waste, and intricate handloom products. These are shipped to over 30 countries, with major destinations encompassing the UAE, the US, China, the UK, Italy, Singapore, Australia, France, Hong Kong, and Canada. The strategic importance of pushing value-added exports lies in generating higher revenue per unit of product, fostering greater innovation, and creating more skilled jobs within the domestic industry.
V. Balasubramaniyan, President of the Silk Association of India, highlighted the practical benefits, noting that the board’s enhanced authority would "significantly reducing delays in project approvals and implementation." He emphasized that proposals exceeding ₹50 lakh previously required sanction from the Ministry of Textiles, a process that historically consumed substantial time. This administrative streamlining is crucial for a sector that thrives on timely investments in research and development, quality control, and infrastructure modernization. For instance, the rapid adoption of advanced automatic reeling machines, improvements in silkworm seed quality through timely research, and the establishment of sophisticated testing and certification facilities are all contingent on efficient project funding and execution.
Raja M. Shanmugam, former president of the Tirupur Exporters’ Association, echoed these sentiments, suggesting that while the impact may not be immediate, smoother project implementation and faster decision-making would gradually enhance India’s competitiveness in international markets. The global silk market is characterized by discerning buyers, particularly in Europe and Japan, who demand stringent quality standards, ethical sourcing, and consistent supply. Delays in upgrading production and processing facilities directly impact India’s ability to meet these high benchmarks, often leading to a loss of market share to more agile competitors. The ability to procure modern equipment and services more swiftly will directly address these quality gaps, making Indian silk products more appealing to demanding global consumers.
The increased approval limit is not merely an administrative tweak; it is a strategic enabler for various critical initiatives within the sericulture sector. Programmes focused on improving productivity, enhancing fibre quality, and developing new silk products require timely investments. For silkworm rearers, this could mean faster access to disease-resistant silkworm races and better rearing technologies. For reelers, it implies quicker installation of multi-end reeling machines that produce superior quality yarn. Weavers stand to benefit from quicker access to modern looms and design innovations, allowing them to create high-value fabrics and garments. Furthermore, research institutions under the CSB can expedite their studies into pest management, climate-resilient sericulture practices, and value addition techniques, all of which are vital for the long-term sustainability and growth of the industry.
This enhanced financial flexibility also plays into India’s broader economic narrative, including initiatives like "Make in India" and "Vocal for Local." By strengthening the domestic silk industry, the government aims to not only boost exports but also to reduce dependence on imported raw silk, thereby bolstering self-reliance. This import substitution strategy is critical for conserving foreign exchange and fostering a more robust, integrated domestic supply chain. The policy, while not introducing new schemes or increasing financial allocations per se, fundamentally redefines the operational parameters for existing programmes, ensuring that allocated funds are deployed with maximum efficiency and impact.
Looking ahead, the doubling of the CSB’s approval limit signifies a clear commitment from the government to empower statutory boards with greater operational flexibility while maintaining rigorous financial oversight. It is a recognition that decentralized decision-making can be a powerful catalyst for growth, particularly in sectors with diverse regional characteristics and complex value chains like sericulture. The long-term success of this policy will, however, hinge on several factors, including the CSB’s capacity to effectively utilize its newfound autonomy, the continued focus on quality standardization, and sustained investment in research and development. Should these elements converge, India’s silk sector is well-positioned for an accelerated phase of growth, cementing its place as a formidable player in the global market and a vibrant source of economic prosperity for millions.
