Union Budget 2026: FM Sitharaman Proposes Key Components To Promote Labour-Intensive Textile Sector

Union Finance Minister Nirmala Sitharaman, in view of the labour-intensive textile sector, introduced an integrated programme with key components. She emphasised that the first pillar of her plan is the National Fibre Scheme. It 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.

National Handloom and Handicraft Programme

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.

large-scale infrastructure

While 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 said, “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.

(With inputs from ANI)

Read more: FM Sitharaman In Budget 2026 Proposes Interventions In Six Areas To Sustain Economic Growth