New Delhi: The Union Budget 2026–27 has laid strong emphasis on the labour-intensive textile sector. It recognises its critical role in employment generation, exports, rural livelihoods and sustainable manufacturing.
The budget has proposed a comprehensive and integrated policy framework to strengthen the entire textile value chain—from fibre to fashion, from village industries to global markets.
Following are the five sub-components:
(a) National Fibre Scheme: Aimed at achieving self-reliance across the fibre spectrum, the scheme will support natural fibres such as silk, wool and jute, man-made fibres, and new-age fibres. This initiative will strengthen domestic fibre availability, reduce import dependence and support innovation in advanced textile materials.
(b) Textile Expansion and Employment Scheme: This component focuses on modernisation of traditional textile clusters through capital support for machinery, technology upgradation, and establishment of common testing and certification centres. The scheme is expected to enhance productivity, quality compliance and large-scale employment generation.
(c) National Handloom and Handicraft Programme: Existing schemes for handloom and handicrafts will be integrated and strengthened under a unified national programme to ensure targeted and effective support to weavers and artisans, improve incomes and preserve India’s rich textile heritage.
(d) Tex-Eco Initiative: The initiative aims to promote globally competitive, environmentally sustainable textiles and apparel manufacturing, aligning the Indian textile industry with international sustainability standards and emerging green market opportunities.
(e) Samarth 2.0: The upgraded skilling programme will modernise the textile skill ecosystem through deeper collaboration with industry and academic institutions, ensuring availability of industry-ready skilled manpower across the value chain.
Mega Textile Parks and Technical Textiles
The government has also announced the setting up of Mega Textile parks with a focus on integrated infrastructure, scale efficiencies and value addition. These parks will also support growth in technical textiles, a high-potential segment critical for industrial, medical, defence and infrastructure applications.
Mahatma Gandhi Gram Swaraj Initiative
To strengthen khadi, handloom and handicrafts, the Mahatma Gandhi Gram Swaraj Initiative will be launched. The initiative will focus on global market linkage, branding, streamlined training, skilling, quality improvement and process modernisation. It will benefit weavers, village industries, rural youth and support the One District One Product (ODOP) initiative.
