Union Budget 2026-27: How the Textile Sector Will Benefit from New Government Push for Weavers, Artisans & Exports

The Union Budget 2026-27 establishes a framework which predicts major advancements for India’s textile sector by implementing a strategic method through its 5F vision, which includes five stages from agricultural production to international sales. The initiative aims to strengthen the entire textile value chain, from raw material production to global exports.

Union Budget 2026: Budget Allocation 2025-26 vs 2026-27

The government allocated ₹5,272 crore during the previous fiscal year to support various textile programs. The project funding supported infrastructure development, skill training, technology advancements and progress in the handloom and traditional craft industries.

The allocation for 2026-27 has reached the expected ₹10,000 crore, which demonstrates the government's strong commitment to developing the sector through better exports and job creation initiatives. The increased investment will help implement the 5F strategy more effectively.

Budget 2026: 5F Vision

• Farm to Fibre: The approach promotes sustainable practices which produce high-quality cotton, jute, and synthetic fibre raw materials.
• Fibre to Factory: The approach seeks to develop textile production facilities through technological advancements, which will improve their operational efficiency.
• Factory to Fashion: The organisation provides assistance for design development and branding activities, which enable Indian textiles to compete in international markets.
• Fashion to Foreign: The program develops export capabilities through trade incentives, technology assistance, and partnerships with international organisations.
• Foreign: The program enables India to expand its global textile market presence while enhancing supply chain efficiency and generating foreign currency revenue.

Union Budget 2026-27: FM Nirmala Sitharaman Announces 'Integrated Programme for the Textile Sector'

Nirmala Sitharaman, the Union Finance Minister, presented in the Budget 2026–27 her plan to establish an integrated program that contains five distinct parts, which will help the labour-intensive textile industry through its modernisation, workforce development and international market readiness. 

1. National Fibre Scheme

The program aims to achieve self-sufficiency through its use of natural fibres, which include silk, wool, and jute. 

The program provides backing for man-made fibres and advanced materials, which will enhance domestic manufacturing capabilities. 

2. Textile Expansion and Employment Scheme

The program provides financial support to modernise existing textile manufacturing facilities through new equipment purchases. 

The program supports technology advancement through the creation of shared testing facilities, which will provide certification services. 

3. National Handloom and Handicraft Programme

The program plans to combine current initiatives into a unified system, which will deliver specific assistance to weavers and artisans. 

The program aims to boost production and distribution capabilities for handloom and handicraft programs. 

4. Text-ECON Initiative

The program promotes the development of sustainable textiles and apparel products which can compete on a global scale. 

The program aims to enhance product quality while increasing productivity and export capabilities. 

5. SAMARTH 2.0

The program aims to modernise and enhance the textile sector skills development system. 

The program works to create partnerships between business organisations and educational institutions, which will enable students to gain essential skills. 

Additional Measures

The program establishes Mega Textile Parks through a challenging process which focuses on technical textiles and value-added products. 

1. The Mahatma Gandhi Gram Swaraj Initiative works to develop handloom and handicrafts through international market access, product branding, and skills training programs.
2. The program provides backing for rural enterprises, the One District One Product (ODOP) program, village youth, and traditional artisans.
3. The program aims to optimise the entire process of training and skills development, together with the evaluation procedures used in manufacturing.

These measures are expected to benefit weavers, artisans, and rural youth while boosting India’s global textile competitiveness and fostering self-reliance in the sector.