Union Budget 2026–27: A Blueprint For India’s Textile Future

Industry leaders back the government’s integrated push across manufacturing, MSMEs, exports and sustainability.

India’s textile and apparel industry has responded positively to the Union Budget 2026–27, welcoming the government’s structurally focused approach aimed at strengthening fibre security, modernising manufacturing clusters, enhancing skills, promoting sustainability and improving global competitiveness.

Industry leaders said the budget reflects a long-term vision for building a resilient and inclusive textile ecosystem, with the Integrated Programme for Textiles emerging as a key anchor. The programme spans fibre development, cluster expansion, employment generation, skilling and sustainability, signalling a shift towards comprehensive value-chain reform rather than isolated policy interventions.

Rajinder Gupta

Rajinder Gupta, Chairman, Trident Group India, said the Budget delivers a strong boost to the sector. “By prioritising mega textile parks, strengthening the fibre value chain from natural to next-generation fibres and championing initiatives such as Mahatma Gandhi Gram Swaraj and enhanced skilling programmes, the government has laid the foundation for a globally competitive, modern and inclusive textile sector,” he said, adding that the measures would empower weavers, artisans and MSMEs while expanding India’s global footprint.

Riju Jhunjhunwala

Riju Jhunjhunwala, Chairman & Managing Director, RSWM Limited, said the Union Budget 2026 is anchored around three core kartavyas, accelerating growth, fulfilling aspirations and ensuring access to opportunities for all. “Within textiles, the focus on fibre self-reliance, cluster modernisation, skilling through Samarth 2.0, sustainable manufacturing under the Tex-Eco initiative, mega textile parks and value addition in technical textiles signals a strong push towards future-ready production systems,” he said. Jhunjhunwala added that the Budget stands out for its holistic intent, linking skills with industry, sustainability with scale, and growth with responsibility.

Rajeev Gupta

Echoing this view, Rajeev Gupta, Joint Managing Director, RSWM Limited, described the Budget as a decisive and reform-led roadmap for textiles. He highlighted the Integrated Programme for Textiles as a holistic policy framework addressing fibre security, sustainability, skilling and competitiveness across the value chain. “The National Fibre Scheme is particularly significant in strengthening self-reliance across natural, man-made and new-age fibres, while mitigating supply-chain vulnerabilities amid global disruptions,” he said.

Sanjay Jain

Export-oriented players also expressed confidence in the government’s direction. Sanjay Jain, Group CEO, PDS Ltd., said the budget strengthens India’s ambition to emerge as a globally integrated manufacturing hub. “The continued thrust on public capex, creation of champion MSMEs and targeted support for labour-intensive sectors like textiles will significantly strengthen India’s global competitiveness,” he said. Jain also welcomed the launch of SAMARTH 2.0, calling it a positive step towards modernising the skilling ecosystem through stronger industry academia collaboration.

Industry bodies highlighted the inclusive and sustainability-led thrust of the budget. The Clothing Manufacturers Association of India (CMAI) said the measures demonstrate a clear outcomes-oriented intent to modernise the textile value chain and strengthen livelihoods across the sector. “The National Fibre Mission, Mission for Cotton Productivity, Samarth 2.0 and the Textile Eco Initiative together address fibre security, skilling, sustainability and export competitiveness,” CMAI said, while noting that higher budgetary allocations would be required over time to drive deeper transformation.

K. Sakthivel

The powerloom sector also welcomed the announcements. K. Sakthivel, Chairman, Powerloom Development & Export Promotion Council (PDEXCIL), described the budget as a visionary roadmap aligned with India’s self-reliance and export-led growth objectives. “The Integrated Textile Programme, with its focus on fibre security, cluster modernisation, sustainability and skilling, will directly benefit the powerloom ecosystem,” he said, adding that trade facilitation measures would empower MSMEs and small exporters.

Prabhu Dhamodharan

From a cluster and regional perspective, Prabhu Dhamodharan, Convenor, Indian Texpreneurs Federation (ITF), emphasised the importance of raw material security and scale. “Competitiveness in textiles begins with fibre availability and pricing. The National Fibre Mission and mission-mode mega textile parks will enable faster scaling, higher productivity and globally competitive supply chains,” he said, noting that key exporting states such as Tamil Nadu stand to gain significantly.

Bhavini Parikh

Sustainability and circularity also emerged as a key theme. Bhavini Parikh, Founder, Bunko Junko, said the Budget marks a turning point for upcycling and recycling in fashion. “With initiatives like Tex-Eco, cluster modernisation and Samarth 2.0, circularity is now core to India’s growth strategy. Upcycling is no longer a side project, it is a policy-aligned, market-ready opportunity with jobs, climate impact and brand value built in,” she said.

Mamta Binani

Beyond textiles, the broader MSME and export ecosystem welcomed the Budget’s financial and trade facilitation measures. Mamta Binani, President, MSME Development Forum – West Bengal, termed the Rs 10,000 crore MSME Growth Fund a transformational step. “This initiative will act as a catalyst for innovation, modernisation and deeper integration into global value chains at a time when MSMEs face liquidity challenges and global trade disruptions,” she said.

S C Ralhan

The export community echoed similar optimism. S C Ralhan, President, Federation of Indian Export Organisations (FIEO), said the Union Budget 2026–27 sends a strong and positive signal to global markets. “The Budget demonstrates the Government’s resolve to strengthen manufacturing, MSMEs and exports through infrastructure expansion, tax and customs reforms and trust-based governance,” he said.

Overall, industry stakeholders view the Union Budget 2026–27 as a constructive and forward-looking package that prioritises long-term supply-side strengthening over short-term stimulus. While immediate demand-side impact may be limited, the consensus is that the focus on fibre security, infrastructure, skilling, sustainability and exports lays a strong foundation for India’s emergence as a globally competitive, resilient and value-driven textile and apparel manufacturing hub.