Maran said that the beneficiaries would get 10 percent capital subsidy for the machinery they had purchased.

He added that a committee has been set up to formulate a national fibre policy and it would submit its recommendations in three months.

The country's textile sector is facing one of its worst crises as business orders from the advanced economies like the US and Europe fell sharply due to the global slowdown.

According to the Apparel Export Promotion Council (AEPC), India's garment exports fell 15.4 percent in the first quarter this fiscal.