Budget 2026: Government proposes integrated programme to boost textile sector

The government on Sunday (February 1, 2026) announced an integrated programme to boost growth in the labour-intensive textile sector and also proposed setting up mega textile parks.

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In her budget speech, Union Finance Minister Nirmala Sitharaman said, “For the labour-intensive Textile Sector, I propose an Integrated Programme with 5 sub-parts”. Under these five sub-parts, she announced a ‘National Fibre Scheme’ for self-reliance in natural fibres such as silk, wool and jute, man-made fibres, and new-age fibres.

The government proposed a ‘Textile Expansion and Employment Scheme’ to modernise traditional clusters with capital support for machinery, technology upgradation and common testing and certification centres.

A National Handloom and Handicraft programme has been proposed to integrate and strengthen existing schemes and ensure targeted support for weavers and artisans. That apart, the Minister said a ‘Tex-Eco Initiative’ will be launched to promote globally competitive and sustainable textiles and apparels.

The government also proposed ‘Samarth 2.0’ to modernize and upgrade the textile skilling ecosystem through tie-ups with industry and academic institutions.

“Further, I propose to set up Mega Textile Parks in challenge mode. They can also focus on bringing value addition to technical textiles,” Ms. Sitharaman said.

Moreover, the Centre will launch the Mahatma Gandhi Gram Swaraj initiative to strengthen khadi, handloom and handicrafts.

“This will help in global market linkage and branding. It will streamline and support training, skilling, quality of process and production. This will benefit our weavers, village industries, One-District, One-Product initiative and rural youth,” the Finance Minister said.

She proposed a dedicated initiative for sports goods that will promote manufacturing, research and innovation in equipment design as well as material sciences.

“I propose to extend the time period for export of final product from the existing 6 months to 1 year, for exporters of leather or textile garments, leather or synthetic footwear and other leather products,” the Minister said.