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Budget 2026: Sitharaman Unveils Mega Textile Park, Skilling Push for Sector

Finance Minister Nirmala Sitharaman has proposed an integrated programme with three key components to boost the labour-intensive textile sector. The plan includes a National Fibre Scheme for self-reliance, a modernisation scheme for traditional clusters, and enhanced support for handlooms and handicrafts. A major highlight is Samarth 2.0, aimed at modernising the skilling ecosystem through industry-academia collaboration. The minister also announced a mega textile park to integrate production, reduce logistics costs, and focus on high-value technical textiles.

Key Points: Budget 2026: FM Sitharaman's Plan for Textile Sector Growth

  • National Fibre Scheme for self-reliance
  • Textile Expansion and Employment Scheme for modernisation
  • National Handloom and Handicraft Programme for artisans
  • Samarth 2.0 for future-ready skilling
  • Mega textile park for integrated manufacturing
2 min read

Budget 2026: FM Sitharaman proposes key components to promote labour intensive textile sector

FM Nirmala Sitharaman announces integrated programme with fibre scheme, mega textile park, and Samarth 2.0 for skilling in Budget 2026.

"Samarth 2.0 is to modernise and upgrade the textile skilling ecosystem through collaboration with industry and academic institutions - Nirmala Sitharaman"

New Delhi, February 1

For the labour-intensive textile sector, Finance Minister Nirmala Sitharaman proposed an integrated programme with key components. The Minister emphasised that the first pillar of her plan, the National Fibre Scheme, aims to "achieve self-reliance in natural fibres like silk, wool, and jute, as well as man-made and new industrial-age fibres."

The second is the Textile Expansion and Employment Scheme, which seeks to modernise traditional clusters by providing capital support for machinery, technology upgrades, and common testing and certification centres.

The third component is the National Handloom and Handicraft Programme (NHHP), designed to integrate and strengthen existing schemes while ensuring targeted support for weavers and artisans.

With the introduction of Samarth 2.0, the government aims to align the workforce with future demands. To promote globally competent and sustainable textiles and apparel, Sitharaman said, "Samarth 2.0 is to modernise and upgrade the textile skilling ecosystem through collaboration with industry and academic institutions," ensuring that the next generation of workers is as tech-savvy as they are skilled.

Closing her remarks on the sector, the Finance Minister turned to large-scale infrastructure as the ultimate solution to improve efficiency. She envisioned a future in which production and value addition occur under one roof, reducing logistics costs and boosting exports.

To achieve this, she told the assembly, "I propose to set up a mega textile park," further clarifying that "they can also focus on bringing value addition to technical textiles." This strategic focus on technical textiles--used in everything from healthcare to automotive industries--suggests a shift toward high-value manufacturing that could redefine India's role in the global market.

- ANI

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Reader Comments

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Rohit P
Mega textile parks and focus on technical textiles is the need of the hour to compete with Bangladesh and Vietnam. But execution is key. We've seen schemes before. The government must ensure timely implementation and ease of doing business for manufacturers.
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Aman W
Samarth 2.0 sounds promising. Skilling youth with modern tech is essential. But will these trained workers find jobs in India, or will they also look for opportunities abroad? The industry needs to scale up to absorb this new workforce.
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Sarah B
As someone working in sustainable fashion, I'm glad to see the mention of "globally competent and sustainable textiles." India has the potential to be a leader in ethical manufacturing. Hope the environmental aspect is given real weight in these schemes.
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Karthik V
Self-reliance in fibres is a great vision. We import a lot of man-made fibres. If we can produce quality raw materials domestically, it will reduce costs and increase profit margins for the entire industry. Jai Hind! 🇮🇳
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Nisha Z
With respect, I hope this isn't just another announcement. The textile sector has been promised much before. The Finance Minister must ensure budgets are allocated properly and there is transparency in how funds are used for modernising clusters.
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Varun X
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