Union Budget 2026: FM Nirmala Sitharaman Proposes Key Components To Promote Labour Intensive Textile Sector
Sitharaman announced a comprehensive textile strategy focusing on natural and industrial fibres, modernising clusters, and supporting weavers and artisans through NHHP. Samarth 2.0 aims to create a tech-savvy workforce, while the proposed mega textile park will consolidate production, reduce logistics costs, and promote value addition in technical textiles to strengthen India’s global position.

For the labour-intensive textile sector, Finance Minister Nirmala Sitharaman proposed an integrated programme with key components. | FPJ
New Delhi: For the labour-intensive textile sector, Finance Minister Nirmala Sitharaman proposed an integrated programme with key components. The Minister emphasised that the first pillar of her plan, the National Fibre Scheme, aims to "achieve self-reliance in natural fibres like silk, wool, and jute, as well as man-made and new industrial-age fibres."
The second is the Textile Expansion and Employment Scheme, which seeks to modernise traditional clusters by providing capital support for machinery, technology upgrades, and common testing and certification centres.
The third component is the National Handloom and Handicraft Programme (NHHP), designed to integrate and strengthen existing schemes while ensuring targeted support for weavers and artisans.
With the introduction of Samarth 2.0, the government aims to align the workforce with future demands. To promote globally competent and sustainable textiles and apparel, Sitharaman said, "Samarth 2.0 is to modernise and upgrade the textile skilling ecosystem through collaboration with industry and academic institutions," ensuring that the next generation of workers is as tech-savvy as they are skilled.
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Closing her remarks on the sector, the Finance Minister turned to large-scale infrastructure as the ultimate solution to improve efficiency. She envisioned a future in which production and value addition occur under one roof, reducing logistics costs and boosting exports.
To achieve this, she told the assembly, "I propose to set up a mega textile park," further clarifying that "they can also focus on bringing value addition to technical textiles." This strategic focus on technical textiles--used in everything from healthcare to automotive industries--suggests a shift toward high-value manufacturing that could redefine India's role in the global market.
(Except for the headline, this article has not been edited by FPJ's editorial team and auto-generated from an agency feed.)
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