The Union Budget 2026–27 has introduced significant measures to strengthen Micro, Small and Medium Enterprises (MSMEs), Khadi and village industries, silk production, handloom, and the textile sector.
A comprehensive and integrated scheme for the textile sector has been proposed, which includes the National Fibre Policy, Textile Expansion and Employment Scheme, National Handloom and Handicrafts Programme, Tex-Eco initiative, and Samarth 2.0. These initiatives aim to increase production, generate employment, and promote exports. The establishment of mega textile parks is expected to open new avenues for investment in Uttar Pradesh’s textile and garment industry.
These provisions in the central budget will create new opportunities for millions of entrepreneurs, artisans, and workers associated with MSMEs, Khadi, handloom, silk, and textile industries in Uttar Pradesh. This will not only boost employment but also strengthen the goal of an Atmanirbhar Bharat (self-reliant India).
Rakesh Sachan, Minister of MSME, Khadi and Village Industries, Silk Industry, Handloom and Textiles, stated that the budget will open doors for new opportunities for industries, farmers, and youth. The budget proposes the launch of the Mahatma Gandhi Gram Swaraj initiative to promote Khadi, handloom, and handicrafts. This will empower the rural economy and provide sustainable livelihood opportunities to artisans and weavers, linking traditional industries with modern markets and increasing their income.
To further strengthen the MSME sector, the budget proposes the creation of a ₹10,000 crore SME Growth Fund. Additionally, ₹2,000 crore will be infused as additional capital into the Atmanirbhar Bharat Fund. The scope of the Trade Receivables Electronic Discounting System (TReDS) platform will also be expanded to ensure timely payments and financial assistance to small enterprises, easing their working capital challenges.
The budget introduces a ‘Corporate Mitra’ system to provide MSMEs with business guidance, technical support, and market linkages. It also proposes the revival of 200 heritage industrial clusters across the country, including those related to handloom and handicrafts. This will enhance the identity and competitiveness of traditional industries in Uttar Pradesh.
To boost exports, the budget includes incentives such as the extension of duty-free imports on shoe uppers and increased export timelines for leather and textile garments. These measures are expected to improve the competitiveness of Indian products in global markets.
Leave a Comment