The Maharashtra Government, on 28 March 2012, launched a new textile policy that aims to attract an investment of Rs 40,000 crore by 2017.

The policy aims to lay special emphasis on setting up processing units in the cotton producing sectors, expansion of the textile industry and growth of employment. One of the main feature of the policy is that cooperative spinning mills in Vidarbha, Marathwada and North Maharashtra will be given equity support in the ratio of own share capital (5): Government share capital (45): loan (50). Also, a 10 per cent capital subsidy scheme will be started for new textile projects in Vidarbha, Marathwada and North Maharashtra. Interest subsidy on long-term loan linked to centrally sponsored Technology Upgradation Fund Scheme will be started for new projects. Modernisation or expansion of existing textile units will also be undertaken.