In a major boost to India’s textile industry, Union Textile Minister Giriraj Singh hailed the Union Budget 2026-27 as a comprehensive and all-encompassing plan that positions textiles as a cornerstone for a developed India by 2047. The sector, long recognized for its labor-intensive nature and export potential, has seen remarkable growth under consistent government support, with values surging from Rs 15-16 lakh crore in 2014-15 to over Rs 53 lakh crore today.
Finance Minister Nirmala Sitharaman unveiled an ambitious integrated program for the textile sector, featuring five key subcomponents designed to drive self-reliance, modernization, and sustainability. The National Fiber Scheme targets self-sufficiency in natural fibers like silk, wool, and jute, alongside man-made and emerging industrial-age fibers, reducing import dependency and strengthening raw material security. Complementing this, the Textile Expansion and Employment Scheme focuses on modernizing traditional clusters through capital support for machinery upgrades, technology enhancements, and shared testing/certification centers, aiming to enhance productivity and job creation in rural and semi-urban areas.
The National Handloom and Handicraft Programme (NHHP) integrates and bolsters existing schemes, delivering targeted aid to weavers and artisans to preserve cultural heritage while improving livelihoods. Samarth 2.0 modernizes the skilling ecosystem via partnerships with industry and academia, aligning workforce capabilities with future demands in tech-driven textiles. Rounding out the package, the Tex-Eco Initiative promotes globally competitive, sustainable textiles and apparel, emphasizing eco-friendly practices to meet international standards and boost export appeal.
Adding firepower, Sitharaman proposed establishing mega textile parks in challenge mode, enabling large-scale integrated facilities where production and value addition—including in high-growth technical textiles used in healthcare, automotive, and other sectors—happen under one roof. This reduces logistics costs, improves efficiency, and elevates India’s position in global value chains. The Mahatma Gandhi Gram Swaraj initiative further supports khadi, handloom, and handicrafts, linking them to global markets through branding, training, and quality enhancements.
Giriraj Singh emphasized the budget’s transformative impact, noting the government’s prioritization of textiles in the journey toward Viksit Bharat. This strategic push addresses employment generation, rural empowerment, and export growth amid global challenges, positioning the sector for exponential scaling. With these measures, India aims to become a self-reliant, sustainable textile powerhouse, driving economic progress toward 2047.
The announcements signal a clear intent to weave tradition with innovation, creating millions of jobs while fortifying India’s manufacturing edge. Textile stakeholders have welcomed the focus on capacity building, MSME support, and technical textiles, seeing it as a roadmap for competitiveness in an evolving global landscape.
