Mega Parks & Global Markets: India’s $100B Textile Ambition

In the Union Budget 2026–27, Finance Minister Nirmala Sitharaman announced plans to establish mega textile parks to boost manufacturing and strengthen traditional sectors such as khadi, handlooms, and handicrafts.

A key pillar of the initiative is the launch of SAMARTH 2.0, a skill development programme aimed at modernising and upskilling the textile workforce. The government also outlined measures to promote new-age fibres and develop dedicated textile clusters. Another major component is the Mahatma Gandhi Gram Swaraj Scheme, which seeks to link traditional crafts with global markets through branding, training, and enhanced market access.

The budget proposals include a textile labour incentive scheme, a national programme for handlooms and handicrafts, and a new initiative to strengthen the textile skilling ecosystem. In addition, the government has proposed a textile expansion plan focused on industry modernisation, including capital support for machinery and the introduction of a National Fibre Scheme.

These policy initiatives come as India’s textile and apparel exporters recalibrate their strategies following the signing of free trade agreements with the European Union and the United Kingdom. The agreements are expected to improve market access and enhance the global competitiveness of Indian textile exports.

News by Rahul Yelligetti.