New Delhi : The budget has made big announcements for the textile sector, which is of utmost importance to Gujarat. The Finance Minister has announced the launch of the ‘Textile Labor Incentive Scheme’ to increase employment in the textile industry and the ‘National Handloom and Handicraft Program’ for the development of handicrafts. Most importantly, a proposal has been made to set up a new mega textile park in the country under the ‘Challenge Mode’.
In addition, the ‘Mahatma Gandhi Gram Swaraj Initiative’ will be launched to further strengthen the Khadi and handicraft industry, which provides employment at the rural level, which will directly benefit the rural artisans of Gujarat. With the aim of making MSMEs ‘champions’ in the coming years, new incentive schemes have been announced for small and medium enterprises operating in the textile sector. The budget has laid emphasis on technological upgradation with the announcement of setting up of 2 new hi-tech tool rooms. These new schemes and the construction of mega parks will increase exports to textile hubs like Surat and Ahmedabad in Gujarat and increase the competitiveness of Indian textiles at the international level.
Rather than treating these sectors as niche or purely cultural, the Budget aims to integrate them into export-oriented value chains through better branding, streamlined training and modern production practices. Beyond domestic revival, the Budget signals a sharper competitive intent. The proposed mega textile parks, planned in a challenge mode, are designed as integrated manufacturing clusters capable of supporting large-scale production, technical textiles and higher-value addition.
This approach reflects a clear ambition to move up the value chain and compete more directly with established regional players, particularly Bangladesh, in global sourcing and exports. Skilling and workforce readiness form a parallel thrust. SAMARTH 2.0 is expected to deepen collaboration between industry and academia, ensuring a steady pipeline of skilled workers for a rapidly modernising sector. Summing up the government’s intent, Sitharaman said, “A textile expansion and employment scheme to modernise textile clusters.
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