Budget 2026–27: FM Unveils Five-Part Integrated Programme To Support Textile Sector

New Delhi, Feb 1 (KNN) Finance Minister Nirmala Sitharaman on Sunday while presenting Budget 2026-27 proposed an Integrated Programme for the textile sector comprising five key components.

These include a National Fibre Scheme aimed at promoting self-reliance in natural fibres such as silk, wool and jute, as well as man-made and new-age fibres.

Another component, the Textile Expansion and Employment Scheme, will support the modernisation of traditional textile clusters through capital assistance for machinery, technology upgrades, and the creation of common testing and certification facilities.

A National Handloom and Handicraft Programme will integrate existing schemes to provide targeted support to weavers and artisans. The proposed Tex-Eco Initiative will focus on promoting globally competitive and sustainable textiles and apparel.

She also announced Samarth 2.0, aimed at upgrading the textile skilling ecosystem through collaboration with industry and academic institutions.

The Finance Minister proposed setting up Mega Textile Parks through a challenge mode approach, with an emphasis on value addition in technical textiles.

In addition, the Mahatma Gandhi Gram Swaraj initiative will be launched to strengthen khadi, handloom and handicrafts by improving training, skilling, quality standards, branding and global market linkages, benefiting rural youth and One District One Product initiatives.

Commenting on proposals for the textile sector, K Srikumar, Senior Vice President & Co- Group Head at ICRA said. "An integrated set of proposals for the textiles sector covering fibres, handlooms, technological improvement, sustainability, upskilling and modernisation is expected to make the employment-generating textile sector more resilient. Setup of mega textile parks, fillip for technical textiles, and promotion of handloom and handicraft segments under the Mahatma Gandhi Gram Swaraj initiative, will enable the industry becoming future-ready and globally competitive."

He further said that the time-line extension for exporters to 1-year from 6-months is a reprieve for the textile exporters which have been under pressure following the sharp rise in US tariffs. 

(KNN Bureau)