Finance Minister Nirmala Sitharaman announced a transformative integrated programme for the labour-intensive textile sector during Union Budget 2026-27 presentation. This five-pronged strategy promises self-reliance, modernization, and global competitiveness while generating employment for millions.
National Fibre Scheme for Self-Reliance
The National Fibre Scheme targets self-sufficiency in natural fibres like silk, wool, and jute, alongside man-made and new-age fibres. This initiative strengthens domestic raw material production, reduces import costs, and supports sustainable farming communities across rural India.
Modernization through Textile Expansion Scheme
The Textile Expansion and Employment Scheme modernizes traditional clusters with capital assistance for advanced machinery, technology upgrades, and shared testing-certification centers. These upgrades enhance productivity, quality standards, and market access for small-scale producers.
Support for Handloom, Handicrafts, and Skilling
The National Handloom and Handicraft Programme consolidates existing schemes for targeted weaver and artisan support. SAMARTH 2.0 elevates textile skilling via industry-academia partnerships, building a future-ready workforce equipped for global demands.
Mega Textile Parks and Technical Textiles Focus
Mega textile parks will be established in challenge mode, emphasizing value addition in technical textiles for high-growth applications. The Text-ECON initiative promotes sustainable, competitive textiles and apparel on international platforms.
Mahatma Gandhi Gram Swaraj Initiative
The Mahatma Gandhi Gram Swaraj initiative bolsters handloom and handicrafts with global market linkages, branding, training, and quality processes. It empowers weavers, village industries, ODOP initiatives, and rural youth through streamlined production ecosystems.
