Gujarat Raises Textile Sector Outlay To Rs 2755 Crore In FY27 Budget
Gujarat has significantly enhanced its financial commitment to the textile sector, raising the allocation under the Development of Textile Industry scheme to Rs 2755 crore (approximately US$ 302.71 million) in the 2026–27 state budget. The move reinforces the state’s strategy to strengthen its leadership in textile manufacturing while boosting exports and MSME participation.
Presenting the budget in Gandhinagar, state Finance Minister Kanubhai Desai announced the expanded outlay, up from Rs 2,000 crore in 2025–26 and Rs 2,036.47 crore in 2024–25. The increase marks a substantial year-on-year rise in subsidy-backed industrial support for the textile value chain.
The enhanced allocation is aimed at facilitating capacity expansion, technology upgradation and fresh investments across spinning, weaving, processing and garmenting segments. The budget also sustains support for cottage industries, handloom and small-scale textile enterprises through grants, cooperative assistance, training programmes and export facilitation measures.
Artisan and handicraft segments have received additional backing. Financial assistance to the Gujarat State Handicraft Development Corporation has been raised to ₹48.05 crore for 2026–27, compared with Rs 41.86 crore in the previous year, to improve market access and institutional support. A further Rs 23 crore has been earmarked for design competitions, exhibitions and promotional initiatives to enhance innovation and visibility in the handicraft sector.
To strengthen export-oriented industries, including textiles and apparel, the government has proposed the formation of the Gujarat State Export Promotion Council with an allocation of Rs 5.90 crore. The council is expected to support market expansion and provide structured institutional assistance, particularly to MSMEs. The budget also enables handloom and handicraft producers to leverage e-commerce platforms, reflecting a growing emphasis on digital market access.
Commenting on the budget, Ashish Gujarati, former President of the Southern Gujarat Chamber of Commerce and Industry, said the higher allocation demonstrates the state’s continued commitment to implementing its textile policy and accelerating sectoral growth. He noted that the proposed Export Promotion Council would help MSMEs expand exports through stronger market linkages and institutional support.
Overall, the Budget outlines a dual approach: scaling up industrial textile investment through a higher core outlay while sustaining traditional, artisan and MSME segments through targeted subsidies, export facilitation and digital integration.
