In a major boost to India’s textile and handicraft sector, Union Finance Minister Nirmala Sitharaman announced the setting up of mega textile parks under a “challenge mode” selection process, along with the launch of the Mahatma Gandhi Gram Swaraj initiative during the Union Budget 2026-27.
The initiative aims to accelerate growth in the labour-intensive textile ecosystem, supporting traditional crafts, handloom, Khadi, and technical textiles while strengthening global competitiveness.
FM Sitharaman outlined a five-part integrated programme to modernize the sector:
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National Fibre Scheme – Promotes self-reliance in natural fibres like silk, wool, jute, and new-age man-made fibres.
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Textile Expansion and Employment Scheme – Modernises traditional clusters with capital support for machinery, technology upgrades, and common testing and certification centres.
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National Handloom and Handicraft Programme – Integrates existing schemes to provide targeted support for weavers and artisans.
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Text-ECON Initiative – Encourages globally competitive and sustainable textiles and apparel.
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SAMARTH 2.0 – Upgrades the textile skilling ecosystem through partnerships with industry and academic institutions.
The mega textile parks, selected through a competitive “challenge mode,” will focus on value addition, technical textiles, and export readiness. The Mahatma Gandhi Gram Swaraj initiative will further support rural artisans, streamline skilling, ensure quality standards, and strengthen India’s presence in global markets.
These measures are expected to benefit millions of weavers, artisans, and workers, promote rural employment, and enhance India’s position as a global textile hub