NewKerala.com

Budget 2026-27 Boosts Textiles with Mega Parks, Export Relief & Skilling

The Union Budget 2026-27 introduces Mega Textile Parks to provide integrated infrastructure and boost the technical textiles segment. It extends the export obligation period for garment and footwear exporters from six to twelve months, easing compliance and working capital. A comprehensive integrated programme for the textile sector includes five sub-components, from a National Fibre Scheme to the upgraded Samarth 2.0 skilling initiative. Additional measures include a Rs 10,000 crore SME Growth Fund and reforms to the TReDS platform to improve liquidity for MSMEs.

Key Points: Budget 2026: Mega Textile Parks, Export Relief & Rs 10,000 Cr SME Fund

  • Mega Textile Parks in challenge mode
  • Export obligation period doubled to 12 months
  • Rs 10,000 crore SME Growth Fund launched
  • Samarth 2.0 for industry-ready skilling
  • Boost for khadi, handloom via Gram Swaraj Initiative
2 min read

Union Budget 2026-27 promises more Mega Textile Parks, export relief

FM Nirmala Sitharaman announces Mega Textile Parks, extended export periods, and a Rs 10,000 crore SME fund to modernise India's textile sector and boost exports.

"It will benefit weavers, village industries, rural youth, and support the One District One Product (ODOP) initiative. - Ministry of Textiles"

New Delhi, Feb 1

In the Union Budget 2026-27, Finance Minister Nirmala Sitharaman announced capital support for machinery, technology upgradation, and the establishment of common testing and certification centres to modernise traditional textile clusters.

The government will set up "Mega Textile Parks in challenge mode" to provide integrated infrastructure, scale efficiencies, and value addition, an official statement said.

These parks will also support growth in technical textiles, a high-potential segment critical for industrial, medical, defence, and infrastructure applications.

Further, an integrated Programme for the Textile Sector with five sub‑components, including a National Fibre Scheme, a Textile Expansion and Employment Scheme, a National Handloom and Handicraft Program, a Tex‑Eco Initiative, and Samarth 2.0 for skilling, was announced in the Budget.

Samarth 2.0 is an upgraded skilling programme to modernise the textile skill ecosystem through deeper collaboration with industry and academic institutions, ensuring the availability of industry-ready skilled manpower across the value chain.

A statement from the Ministry of Textiles also highlighted measures to strengthen khadi, handloom, and handicrafts through the launch of the Mahatma Gandhi Gram Swaraj Initiative, focusing on global market linkage, branding, streamlined training, skilling, and process modernisation.

"It will benefit weavers, village industries, rural youth, and support the One District One Product (ODOP) initiative," it said.

The government also announced an extension of the export obligation period from six months to 12 months for exporters using duty‑free imported inputs in textile garments, leather garments, and synthetic footwear.

This measure will provide greater operational flexibility, ease of compliance, and improved working capital management for exporters.

Textile MSMEs will enjoy more liquidity through Trade Receivables Discounting System (TReDS) reforms such as mandatory use by CPSEs, credit guarantee support, linking GeM with TReDS, and introducing TReDS receivables as asset‑backed securities, the Ministry said.

A dedicated Rs 10,000 crore SME Growth Fund has been introduced to create future champions, incentivising enterprises based on select criteria, it added.

- IANS

Share this article:

Reader Comments

R
Rohit P
Mega Textile Parks in challenge mode sounds interesting. But the real challenge will be execution and avoiding delays. We've seen announcements before. Need to see on-ground results, especially for MSME liquidity. The TReDS reforms are a good move if implemented properly.
A
Arjun K
Technical textiles for defence and medical use is a game-changer! This can reduce our import dependence. The 12-month export obligation extension is a big relief for exporters facing global uncertainties. Jai Hind! 🇮🇳
S
Sarah B
As someone working in sustainable fashion, I'm cautiously optimistic about the Tex-Eco Initiative. I hope it includes strong guidelines for reducing water pollution and chemical use in these new parks. Growth shouldn't come at the cost of our environment.
V
Vikram M
The Mahatma Gandhi Gram Swaraj Initiative for khadi and handloom is the heart of this budget. Branding and global market linkage for our artisans is long overdue. This can truly bring "swaraj" to our villages if done right. 👏
K
Karthik V
Rs 10,000 crore SME fund is promising. But the 'select criteria' worries me. Will it favor certain regions or types of businesses? The scheme must be transparent and accessible to small units across Tamil Nadu, Gujarat, Punjab equally.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50