Karnataka approves Rs 4,000 crore textile policy to attract Rs 20,000 crore investment

Bengaluru: Karnataka has notified its Textile & Apparel Policy (4.0) 2026-31, with a financial outlay of Rs 4,000 crore aimed at attracting Rs 20,000 crore in investments and creating 5 lakh jobs over the next five years.

The policy, approved on the directions of Chief Minister DK Shivakumar, seeks to expand textile and apparel manufacturing beyond Bengaluru and promote more balanced regional industrial growth.

The government has identified 34 focus taluks for targeted support. New eligible textile and apparel units established in these taluks will receive additional incentives and concessions over and above the benefits available under the policy, an official news release said.


For the first time, the policy also brings silk yarn production, including silk reeling and silk spinning, within the scope of the Department of Handlooms and Textiles. The move is aimed at strengthening Karnataka's silk value chain and encouraging investment in silk-related manufacturing, the release added.

The policy also provides special incentives for eligible textile and apparel units at the Pradhan Mantri Mega Integrated Textile Region and Apparel (PM MITRA) Park in Kalaburagi. The focus is to drive investment and employment in the Kalyana Karnataka region.

The government said the policy will focus on textile production, technical textiles, handlooms, silk, skill development, exports and sustainable manufacturing, with the aim of positioning Karnataka as a globally competitive textile and apparel manufacturing hub.

The government order notifying the policy was issued on September 30 by Rohini Sindhuri, secretary to the government, Department of Commerce and Industries.

The policy and its package of incentives and concessions will be effective from September 30, 2026, for five years or until the next textile policy is announced, whichever is earlier, the release said.