Union Budget FY 2026-27: Integrated Push to Modernise and Strengthen Textile Sector
The Union Budget 2026-27 reaffirms textiles as a priority labour-intensive sector, recognising its critical role in employment generation, exports, and regional manufacturing clusters. The Budget adopts a holistic strategy to modernise traditional textile ecosystems, strengthen fibre self-reliance, and upgrade skills across the entire value chain.
Key Highlights:
- Integrated Textile Programme with five focused components to drive sector-wide transformation
- National Fibre Scheme: Support for self-reliance in natural, man-made, and new-age fibres
- Textile Expansion & Employment Scheme: Capital support for machinery modernisation and technology upgradation in traditional clusters
- National Handloom and Handicraft Programme: Integration and strengthening of existing schemes for artisans and weavers
- Tex-Eco Initiative: Promotion of globally competitive, sustainable textiles and apparel
- Samarth 2.0: Modernisation of textile skilling through industry-academia collaboration
Impact:
The initiatives are expected to boost productivity, encourage value addition, enhance sustainability, and strengthen India’s competitiveness in global textile and apparel markets while creating large-scale employment opportunities.
