New Delhi, Oct. 24 -- The government is weighing a Rs.40,000-crore plan to modernise India's traditional textile and garment clusters over five years, aiming to improve their cost competitiveness and efficiency through infrastructure and technology upgrades, two people familiar with the matter told Mint.

The proposed Textile Expansion and Employment (TEEM) Scheme is part of a broader push to boost textile and garment manufacturing and exports, and capitalise on key free trade agreements (FTAs) signed by India in recent years, including those with the UK and the European Union (EU).

The textile ministry's proposal has been examined by the expenditure finance committee, an interministerial body under the expenditure secretary that vets ma...