Five-point plan to make textiles self-reliant
Fibre mission to boost natural and man-made fibres
Cluster upgrades and direct support for MSMEs, weavers and artisans
In her Union Budget 2026-27 speech, Finance Minister Nirmala Sitharaman proposed a comprehensive strategy to achieve self reliance in the labour intensive textile sector. The five initiatives comprise the National Fibre Mission for Self-Reliance, Textile Expansion and Employment Scheme, National Handloom and Handicrafts Programme, SAMARTH 2.0, and Mahatma Gandhi Swaraj Initiative.
The National Fibre Mission for Self-Reliance is aimed at strengthening India’s natural fibre ecosystem including silk, wool, and jute, alongside the promotion of man-made fibres to enhance competitiveness and reduce import dependence, the minister said in the Lok Sabha on Sunday.
1 January 2026
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The Textile Expansion and Employment Scheme will seek to modernise traditional textile clusters through capital support for MSMEs, technology upgradation, and the establishment of common testing and certification centres. The National Handloom and Handicrafts Programme, she said, will integrate and strengthen existing schemes and ensure a targeted and direct support to weavers and artisans.
The Tex Eco Initiative, focused on promoting globally competitive and sustainable textiles and apparel, aligned with international environmental standards while SAMARTH 2.0 will modernise and upgrade the textile skilling ecosystem through deeper collaboration with industry and academic institutions, Sitharaman said.
"Further, I propose the setting up of Mega Textile Parks in challenge mode, with a focus on scale, innovation, and value addition, including technical textiles. Finally, I propose to launch the Mahatma Gandhi Swaraj Initiative to strengthen khadi, handloom, and handicrafts, and to support global market linkages and branding for these heritage sectors," she says.
