FM Announces Five Initiatives for Self-Reliance in India’s Textile Sector

Finance Minister Nirmala Sitharaman unveiled a bold vision for India’s textile industry in her Union Budget 2026-27, announcing five major initiatives aimed at achieving self-reliance in this labour-intensive sector. These measures focus on strengthening the entire textile ecosystem—from natural and man-made fibres to modernisation of clusters, skilling, and global competitiveness.

The proposals are expected to transform India’s textile landscape, promote sustainable practices, support artisans, and enhance export potential.

Market Performance: Textile Sector on the Upswing

The textile industry is one of India’s largest employment generators and a key contributor to exports. With these five initiatives, the sector is poised to:

• Boost domestic production and reduce import dependence.
• Modernise traditional clusters, increasing efficiency and competitiveness.
• Support artisans and weavers directly, improving livelihoods and productivity.
• Enhance export competitiveness, especially for garments, footwear, and handicrafts.

The government has also extended the export obligation period for textile, leather, and marine products from six months to twelve months for items made with duty-free imported inputs, providing more flexibility and easing working capital constraints for exporters.

Main News: Five Initiatives for Textile Self-Reliance

Finance Minister Sitharaman outlined five key initiatives designed to address structural gaps in the textile sector and strengthen India’s position globally:

• National Fibre Mission for Self-Reliance
  • Focuses on natural fibres like silk, wool, and jute.
  • Encourages man-made fibre production to boost competitiveness.
  • Aims to reduce dependency on imports and create a robust domestic fibre ecosystem.
• Textile Expansion and Employment Scheme
  • Modernises traditional textile clusters through capital support for MSMEs.
  • Facilitates technology upgradation for better productivity and quality.
  • Establishes common testing and certification centres to ensure standards.
• National Handloom and Handicrafts Programme
  • Integrates existing schemes to provide direct support to weavers and artisans.
  • Strengthens market linkages and access for heritage sectors.
  • Ensures that financial support reaches the intended beneficiaries efficiently.
• SAMARTH 2.0 and Tex-Eco Initiative
  • SAMARTH 2.0: Upgrades the textile skilling ecosystem with stronger industry-academia collaboration.
  • Tex-Eco Initiative: Promotes sustainable and globally competitive textiles, aligned with international environmental standards.
• Mahatma Gandhi Swaraj Initiative
  • Focuses on khadi, handloom, and handicrafts.
  • Strengthens branding and global market linkages for traditional Indian textiles.
  • Supports innovation, scale, and value addition in heritage sectors.

Additionally, the government plans to launch Mega Textile Parks under a challenge mode. These parks will focus on:

• Scale and innovation
• Technical textiles
• Shared infrastructure and compliance readiness

Company and Sector Details

The initiatives are expected to impact multiple segments of the textile sector:

• MSMEs: Direct capital and technology support will enhance competitiveness.
• Artisans and Handloom Workers: Greater access to government schemes, market linkages, and branding opportunities.
• Exporters: Longer export obligation periods and better supply chain support will improve operational flexibility.
• Sustainability Focused Firms: Tex-Eco Initiative ensures alignment with global environmental standards, attracting international buyers.

Summary: A Strategic Move Towards Self-Reliance

The Union Budget 2026-27 lays out a comprehensive roadmap for self-reliance in textiles. The five initiatives are not just policy announcements—they form a strategic ecosystem, connecting fibres, clusters, skilling, sustainability, and global markets.

Key takeaways:

• Strengthening natural and man-made fibre production.
• Modernising textile clusters for efficiency and quality.
• Supporting handloom and handicrafts with direct schemes and market access.
• Promoting sustainability and skill development through SAMARTH 2.0 and Tex-Eco.
• Launching Mega Textile Parks and the Mahatma Gandhi Swaraj Initiative to drive innovation and global recognition.

This integrated approach promises a resilient, self-reliant, and globally competitive textile industry—benefiting manufacturers, artisans, and exporters alike.

Source: Outlook Business