In the Union Budget 2026–27, Finance Minister Nirmala Sitharaman announced a comprehensive five-point programme aimed at boosting India’s textile industry — a major employer and export earner — with a focus on production growth, modernisation, skill development, and global competitiveness.
Under the integrated strategy, the government aims to accelerate growth in the labour-intensive textile ecosystem, expand value addition across segments, and support traditional crafts like handloom and khadi.
Five Key Components of the Textile Push
- National Fibre Scheme: Promotes self-reliance in key natural fibres such as silk, wool, and jute, as well as man-made and advanced industrial fibres, strengthening raw material supply chains.
- Textile Expansion and Employment Scheme: Aims to modernise traditional clusters by providing capital support for machinery upgrades, advanced technology adoption, and common testing/certification centres so Indian producers can compete globally.
- National Handloom and Handicraft Programme (NHHP): Integrates and enhances existing schemes to offer more focused support to weavers and artisans, improving quality, production efficiency, and market access.
- Text-ECON Initiative: Designed to make Indian textile and apparel products globally competitive and sustainable, encouraging innovation, eco-friendly practices, and higher design standards.
- SAMARTH 2.0: A revamped skilling initiative to upgrade human capital in the textile industry through partnerships with industry and academic institutions, ensuring a skilled workforce ready for modern production needs.
Mega Textile Parks and Traditional Craft Support
Beyond the five key programmes, the Budget proposes setting up mega textile parks through a “challenge mode” selection process, designed to attract investment and boost value addition in technical textiles — a fast-growing export segment.
The Finance Minister also launched the Mahatma Gandhi Gram Swaraj initiative to strengthen the khadi, handloom, and handicraft sectors, providing global market linkages, branding support, and streamlined training and quality control systems to benefit village industries and artisans.
Market Response
Shares of textile stocks, such as Gokaldas Exports, Welspun Living, and Trident, reacted positively to the Budget proposals, with gains of up to 5% as investors welcomed supportive measures for the sector.
