New Delhi: The Union Budget 2026-27 has outlined a comprehensive roadmap for the textile sector through an integrated programme while proposing the development of Mega Textile Parks to enhance value addition, competitiveness, and employment generation across the industry.
With a focus on strengthening technical textiles and scaling manufacturing capabilities, the Budget proposes setting up Mega Textile Parks in challenge mode.
Mega Textile Parks to Drive Value Addition in Textiles
These parks are aimed at creating world-class infrastructure, supporting modern production ecosystems, and positioning India as a globally competitive textile manufacturing hub.
For the labour-intensive textile sector, the Budget introduces an integrated programme comprising five key components.
- The first is the National Fibre Scheme, which seeks to promote self-reliance in natural fibres such as silk, wool, and jute, along with man-made and new-age fibres.
- The second component, the Textile Expansion and Employment Scheme, focuses on modernising traditional textile clusters by providing capital support for machinery, technology upgradation, and the establishment of common testing and certification centres.
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Mega Textile Parks: Five-Component Integrated Programme for Textile Sector Development
- The third element is the National Handloom and Handicraft Programme, designed to integrate and strengthen existing schemes while ensuring targeted support for weavers and artisans.
- The fourth component, the Tex-Eco Initiative, aims to promote sustainable and globally competitive textiles and apparel.
- The fifth pillar, Samarth 2.0, seeks to modernise and upgrade the textile skilling ecosystem through closer collaboration with industry and academic institutions.
Mahatma Gandhi Gram Swaraj Initiative for Khadi and Handicrafts
The Budget also proposes the launch of the Mahatma Gandhi Gram Swaraj initiative to strengthen khadi, handloom, and handicrafts.
This initiative will support global market linkage and branding while streamlining training, skilling, and quality processes in production. It is expected to benefit weavers, village industries, rural youth, and initiatives such as One District–One Product.
Dedicated Initiative for Sports Goods Manufacturing
During the Budget presentation, Finance Minister Nirmala Sitharaman highlighted India’s potential to emerge as a global hub for high-quality and affordable sports goods.
To support this vision, the Budget proposes a dedicated initiative focused on promoting manufacturing, research, innovation in equipment design, and advancements in material sciences.
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Reacting to the announcements, a Fabindia spokesperson said, “The Union Budget 2026 presents a positive and purposeful roadmap for India’s textile and apparel sector, with a strong focus on strengthening the artisan and craft ecosystem.
The integrated measures announced – such as the National Fibre Scheme, the Textile Expansion and Employment Scheme, the National Handloom Programme, and the development of Mega Textile Parks – will reinforce domestic manufacturing, drive value addition, and improve competitiveness while ensuring artisans remain central to India’s growth story and the Make in India vision.”
