Budget 2026: Textile Industry ‘Adorned’ by Mega Manufacturing Parks, R&D and Legacy Clusters [Read Finance Bill 2026]
The Budget also proposes the push for increasing sporting goods manufacture in India.
The Union Budget for the financial year 2026–27 was presented by Finance Minister NirmalaSitharaman in the Lok Sabha on Sunday, February 1, 2026.
Among the series of measures introduced, a significant push was aimed for domestic manufacturing, promoting self-reliance in natural fibres, reviving traditional clusters and enhancing research and innovation capabilities.
The proposals span infrastructure creation, skill development, while also developing advanced material research to improve India's global competitiveness in the sector.
National Fibre Scheme
A key inclusion comes in the form of the National Fibre Scheme, to achieve self-reliance in natural fibres such as cotton, jute, wool, silk and coir.
The scheme shall strengthen domestic fibre supply chains, improve quality standards and support producers engaged in fibre cultivation.
The Budget also unveiled Samarth 2.0, an upgraded skilling initiative designed to modernise the textile skilling ecosystem. The programme shall emphasise collaboration between industry and academic institutions to provide workforce capabilities as per evolving technologies, manufacturing processes and international standards across the textile and apparel chains.
Minister Sitharaman also reiterated the importance of Mega Textile Manufacturing Parks, to provide end-to-end facilities for spinning, weaving, processing and garment manufacturing.
⚠️ Missed a Budget notification? That’s where mistakes begin | Click Here
In addition, the Budget announced measures for the rejuvenation of legacy industrial clusters, with a focus on modernising infrastructure and improving productivity in traditional textile hubs. The scheme pays homage to India’s traditional textile manufacturing methods, while seeking to take it beyond the nation.
The Mahatma Gandhi Gram Swaraj Initiative was also announced with a strong focus on textiles, training, skilling and production at the grassroots level. The initiative is intended to benefit weavers, artisans and rural industries and is aligned with the ‘One District, One Product’ framework to support localised textile production and employment generation.
The Budget further highlighted a renewed focus on sports goods manufacturing,
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
