New Delhi: In a major push to strengthen India’s traditional craft and textile ecosystem, Finance Minister Nirmala Sitharaman on Sunday announced the launch of mega textile parks under a “challenge mode” selection framework and unveiled the Mahatma Gandhi Gram Swaraj initiative, aimed at revitalizing Khadi, handloom, and handicrafts. The announcements were part of her Union Budget 2026–27 presentation in Parliament.
The Finance Minister said the government plans to accelerate growth in the labour-intensive textile sector through an integrated programme comprising five key components, each designed to enhance production, skilling, and global competitiveness.
The five sub-components include:
National Fibre Scheme – Focused on achieving self-reliance in natural fibres like silk, wool, jute, as well as man-made and emerging new-age fibres.
Textile Expansion and Employment Scheme – Aims to modernize traditional clusters through capital support for machinery, technology upgrades, and the establishment of common testing and certification centres.
National Handloom and Handicraft Programme – Designed to streamline and strengthen existing schemes, ensuring targeted assistance for weavers and artisans.
Text-ECON Initiative – Seeks to promote globally competitive and sustainable textiles and apparel, enhancing India’s presence in international markets.
SAMARTH 2.0 – Aims to modernize the textile skilling ecosystem through collaboration with industry and academic institutions, equipping youth with future-ready skills.
Sitharaman elaborated, “The mega textile parks, to be set up in challenge mode, will also focus on adding value to technical textiles. Through the Mahatma Gandhi Gram Swaraj initiative, we will strengthen handloom and handicrafts, enhance global market linkages and branding, and support training, skilling, and quality assurance processes.”
She emphasized that these measures will benefit weavers, village industries, participants in the One District One Product (ODOP) initiative, and rural youth, creating sustainable employment and improving the competitiveness of India’s textile and craft sectors on a global stage.
The move marks a strategic effort by the government to preserve traditional craftsmanship, modernize infrastructure, and integrate India’s textile ecosystem with international markets, ensuring that the country’s rich heritage in Khadi, handloom, and handicrafts translates into economic empowerment and global recognition.