FM Sitharaman unveils string of measures to support textiles, khadi, handlooms

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• National Fibre Scheme to boost domestic cotton, jute and man-made fibre supply
• Samarth scheme upgraded to Samarth 2.0 for advanced textile industry training
• Mega Textile Parks, cluster modernization to boost exports and competitiveness

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In her ninth consecutive Union Budget, finance minister Nirmala Sitharaman on February 1 proposed a slew of measures for the Indian textile sector, hit by US tariffs, to boost India’s competitiveness by improving fibre self-reliance, upgrading traditional textile clusters and promoting sustainable textiles.

The government has proposed  an integrated programme for the textile sector, aimed at strengthening self-reliance across the fibre-to-fashion value chain.

A National Fibre Scheme will be launched to promote domestic availability of cotton, jute and man-made fibres, reduce import dependence, and improve quality and sustainability.

To revitalise employment-intensive segments, traditional textile clusters will be modernised with better infrastructure, technology upgradation and market access. A National Handloom and Handicrafts Programme will be rolled out by consolidating and strengthening existing schemes, with enhanced support for weavers and artisans, including design, credit and digital market linkages, Sitharaman said.

The Samarth scheme will be upgraded to Samarth 2.0, with a sharper focus on modern skilling, advanced manufacturing techniques and industry-aligned training to meet emerging requirements of technical textiles and high-value apparel.

The government will also support the setting up of new mega textile parks with a thrust on value addition and technical textiles, while simultaneously strengthening khadi, handloom and handicrafts through focused investments in training, skilling and quality upgradation.

"The announcements on Samarth 2.0 to upgrade the textile ecosystem and the proposal for setting up Mega Textile Parks is a welcome move from an international trade perspective as this will help India stifle the competition expected from Vietnam, Bangladesh and China. Combined with the recent India-EU FTA, this will help textile manufacturers and exporters to grow their exports," said Shashi Mathews, Partner at CMS INDUSLAW.