Budget 2026: Textile boost through five-pronged integrated programme

New Delhi: The National Fibre Mission for self-reliance in special-use fibres, Mahatma Gandhi Gram Swaraj Initiative to promote handloom, and handicrafts, National Handloom and Handicrafts Programme to integrate existing schemes, and a Textile Eco Initiative for sustainable textiles and garments, will aid capacity building to make India ready to capitalise the opportunities from the recent free trade agreements (FTA), industry said.

“The announcements related to textile and clothing industry are towards capacity building to make industry ready to capitalise the huge opportunities that are expected to open due to recent FTAs signed,” said Sanjay K Jain, ICC National Textile Comm Chair.

Last year, India signed trade deals with the UK, Oman and New Zealand. The FTA with the EU, for which negotiations concluded last week, is likely to come into effect this year. The measures come amid the US imposing steep 50% tariffs on India, which came into effect August 27 and have impacted India's textile exports.


The integrated programme to boost textiles announced in the Budget has also proposed to setup Mega Textile Parks in mission mode.

She proposed a dedicated initiative for sports goods that will promote manufacturing, research and innovation in equipment design as well as material sciences.

“I propose to extend the time period for export of final product from the existing 6 months to 1 year, for exporters of leather or textile garments, leather or synthetic footwear and other leather products,” finance minister Nirmala Sitharaman said.

The Confederation of Indian Textile Industry said that the proposal to extend the time period for export of final product from the existing six months to one year for exporters of textile garments and enhanced focus on improving logistics through freight corridors would aid the sector.

“The emphasis on technology upgradation, testing and certification infrastructure, and global linkages aligns closely with our commitment to building craft-led brands rooted in trust, quality, and contemporary relevance. Taken together, this Budget lays a durable foundation for private investment, resilient rural livelihoods, and globally admired Indian textile brands,” said Darshan Dudhoria, CEO, Indian Silk House Agencies.