**Executive Summary**
The Union Budget 2026-27 emphasizes the labor-intensive textile sector, aiming to strengthen the textile value chain from fibre to fashion. The government proposes an Integrated Programme for the Textile Sector with five sub-components and announces the establishment of Mega Textile Parks. The budget also includes measures for export promotion, liquidity support for textile MSMEs, and the creation of “Champion SMEs.”
**Key Points / Main Content**
* **Integrated Programme for the Textile Sector:**
* **National Fibre Scheme:** Supports natural and man-made fibres to strengthen domestic availability and reduce import dependence.
* **Textile Expansion and Employment Scheme:** Modernizes traditional textile clusters with capital support and certification centers.
* **National Handloom and Handicraft Programme:** Integrates existing schemes to support weavers and artisans.
* **Tex-Eco Initiative:** Promotes environmentally sustainable textiles and apparel manufacturing.
* **Samarth 2.0:** Modernizes the textile skill ecosystem through collaboration with industry and academic institutions.
* **Mega Textile Parks and Technical Textiles:**
* Establishes Mega Textile Parks with integrated infrastructure to support technical textiles for industrial, medical, defence, and infrastructure applications.
* **Mahatma Gandhi Gram Swaraj Initiative:**
* Strengthens khadi, handloom, and handicrafts through global market linkage, branding, training, and modernization.
* **Export Promotion Measures:**
* Extends the export obligation period from 6 to 12 months for exporters of textile and leather products.
* **Liquidity Support for Textile MSMEs through TReDS:**
* Mandatory use of TReDS by CPSEs for procurement from MSMEs.
* Credit guarantee support through CGTMSE for invoice discounting on TReDS.
* Linking GeM with TReDS to enable faster and cheaper financing of government procurement receivables.
* Introduction of TReDS receivables as asset-backed securities.
* **Creation of “Champion SMEs”:**
* Introduces a ₹10,000 crore SME Growth Fund to create future Champions.
**Impact Analysis**
**Stakeholder: Textile Manufacturers**
* **Impact:** Enhanced competitiveness, access to modern infrastructure, and improved export opportunities.
* **Action Required:** Leverage the Integrated Programme, participate in Mega Textile Parks, and utilize export promotion measures.
**Stakeholder: Weavers and Artisans**
* **Impact:** Strengthened support through integrated schemes, improved incomes, and preservation of heritage.
* **Action Required:** Engage with the National Handloom and Handicraft Programme and the Mahatma Gandhi Gram Swaraj Initiative.
**Stakeholder: MSMEs**
* **Impact:** Increased liquidity and access to financing through TReDS, potential for growth through the SME Growth Fund.
* **Action Required:** Utilize TReDS for receivables discounting and explore opportunities with the SME Growth Fund.
**Stakeholder: Skilling Institutions**
* **Impact:** Deeper collaboration with industry to modernize the textile skill ecosystem.
* **Action Required:** Engage with the Samarth 2.0 program to ensure industry-ready skilled manpower.
Key Entities Referenced
Integrated Programme for the Textile Sector: A comprehensive program with five sub-components, aimed at enhancing competitiveness, self-reliance, and employment in the textile sector.
Union Budget 2026-27: The budget document emphasizing the labour-intensive textile sector and outlining a comprehensive policy framework to strengthen the textile value chain.
Ministry of Textiles: The government ministry responsible for the textile sector, working with States, industry, MSMEs, and skilling institutions to implement the initiatives.
Mega Textile Parks: Parks to be set up in challenge mode, focusing on integrated infrastructure, scale efficiencies, and value addition in the textile sector.
Mahatma Gandhi Gram Swaraj Initiative: Initiative to strengthen khadi, handloom, and handicrafts through global market linkage, branding, and other modernization efforts.
Ministry of Textiles
Union Budget 2026–27: Major Push to
Employment-Intensive Textile Sector through
Integrated Programmes, Mega Parks and Export
Facilitation
प्रव तथ: 01 FEB 2026 2:01PM by PIB Delhi
The Union Budget 2026–27 has laid strong emphasis on the labour-intensive textile sector, recognising its
critical role in employment generation, exports, rural livelihoods and sustainable manufacturing. A
comprehensive and integrated policy framework has been announced to strengthen the entire textile value
chain—from fibre to fashion, from village industries to global markets.
Integrated Programme for the Textile Sector
To enhance competitiveness, self-reliance and employment, the Government has proposed an Integrated
Programme for the Textile Sector with the following five sub-components:
(a) National Fibre Scheme: Aimed at achieving self-reliance across the fibre spectrum, the scheme will
support natural fibres such as silk, wool and jute, man-made fibres, and new-age fibres. This initiative will
strengthen domestic fibre availability, reduce import dependence and support innovation in advanced
textile materials.
(b) Textile Expansion and Employment Scheme: This component focuses on modernisation of
traditional textile clusters through capital support for machinery, technology upgradation, and
establishment of common testing and certification centres. The scheme is expected to enhance
productivity, quality compliance and large-scale employment generation.
(c) National Handloom and Handicraft Programme: Existing schemes for handloom and handicrafts
will be integrated and strengthened under a unified national programme to ensure targeted and effective
support to weavers and artisans, improve incomes and preserve India’s rich textile heritage.
(d) Tex-Eco Initiative: The initiative aims to promote globally competitive, environmentally sustainable
textiles and apparel manufacturing, aligning the Indian textile industry with international sustainability
standards and emerging green market opportunities.
(e) Samarth 2.0: The upgraded skilling programme will modernise the textile skill ecosystem through
deeper collaboration with industry and academic institutions, ensuring availability of industry-ready
skilled manpower across the value chain.
Mega Textile Parks and Technical Textiles
The Government has also announced the setting up of Mega Textile Parks in challenge mode, with a
focus on integrated infrastructure, scale efficiencies and value addition. These parks will also support
growth in technical textiles, a high-potential segment critical for industrial, medical, defence and
infrastructure applications.Mahatma Gandhi Gram Swaraj Initiative
To strengthen khadi, handloom and handicrafts, the Mahatma Gandhi Gram Swaraj Initiative will be
launched. The initiative will focus on global market linkage, branding, streamlined training, skilling,
quality improvement and process modernisation. It will benefit weavers, village industries, rural youth and
support the One District One Product (ODOP) initiative.
Export Promotion Measures for Textiles and Allied Sectors
In a major boost to exports of textiles, leather and marine products, the Budget has announced:
Extension of the export obligation period from 6 months to 12 months for exporters of textile garments,
leather garments, leather or synthetic footwear and other leather products manufactured using duty-free
imported inputs.
This measure will provide greater operational flexibility, ease of compliance and improved working
capital management for exporters.
Liquidity Support for Textile MSMEs through TReDS
To further strengthen liquidity access for textile MSMEs, the Government has announced key measures to
enhance the effectiveness of the Trade Receivables Discounting System (TReDS), under which over ₹7
lakh crore has already been facilitated:
Mandatory use of TReDS by CPSEs for procurement from MSMEs;
Credit guarantee support through CGTMSE for invoice discounting on TReDS;
Linking GeM with TReDS to enable faster and cheaper financing of government procurement receivables;
Introduction of TReDS receivables as asset-backed securities to deepen secondary markets and enhance
liquidity.
Creation of “Champion SMEs” and supporting micro enterprises:
A dedicated ₹10,000 crore SME Growth Fund has been introduced to create future Champions,
incentivizing enterprises based on select criteria
Way Forward
The Union Budget 2026–27 reflects a clear strategic vision to position India as a global textile
manufacturing and export hub, while ensuring inclusive growth, sustainability and large-scale
employment. The Ministry of Textiles will work closely with States, industry, MSMEs, artisans and
skilling institutions to ensure timely and effective implementation of these initiatives.
https://x.com/TexMinIndia/status/2017847115393732831
*****
MAM/VN
(रलीज़ आईडी: 2221486) आगंतुक पटल : 1684
इस वज्ञ को इन भाषाओ ंम पढ़: Urdu , Marathi , ही , Gujarati