CHENNAI: Presenting the Yuva Shakti Union Budget 2027, Finance Minister Nirmala Sitharaman on Saturday announced an integrated programme for the textile sector, which has been reeling under US tariffs, with an outlay of Rs 1,500 crore.
Under the programme, the government has announced a National Fibre Scheme aimed at achieving self-reliance in natural fibres such as silk, wool and jute, as well as man-made fibres and new-age fibres.
The Budget also proposes a textile expansion and employment scheme to modernise traditional clusters through capital support for machinery, technology upgradation, and the setting up of common testing and certification centres.
Other initiatives include a national handloom and handicraft programme, the TEX-ECO initiative, and Samarth 2.0 to modernise and upgrade the textile skilling ecosystem.
In addition, the government has proposed the setting up of Mega Textile Parks and the Mahatma Gandhi Swaraj initiative to strengthen khadi, handloom and handicrafts.
The Centre also aims to make India a global hub for high-quality, affordable sports goods. “I propose a dedicated initiative for sports goods that will promote manufacturing, research and innovation in equipment design as well as material sciences,” the Finance Minister said. The Budget documents show that ₹500 crore has been earmarked for this initiative.
“I propose to introduce a dedicated ₹10,000 crore SME Growth Fund, to create future champions, incentivising enterprises based on select criteria,” she said. The government has allocated ₹500 crore for the SME Growth Fund for FY27.
Commenting on the announcements, Rahul Kakkad, Tax Partner, Consumer Products and Retail Sector, EY India, said, “The Union Budget firmly positions textiles as a growth and employment engine for India. Through initiatives such as the National Fibre Scheme, cluster modernisation, Samarth 2.0 skilling, and sustainability-led TEX-ECO, the Budget addresses the sector holistically—from raw materials and technology to skills and green manufacturing. Support for khadi and handlooms further strengthens inclusive growth. Collectively, these measures are expected to enhance global competitiveness, boost exports, and generate large-scale employment across the textile value chain.”