Budget 2026: Sitharaman Boosts Textile Sector Ahead of Key State Elections

• Finance Minister Nirmala Sitharaman emphasized the textile sector in Budget 2026, making several announcements ahead of elections in textile-heavy states like Tamil Nadu and West Bengal.
• The textile and apparel industry contributes significantly to India's GDP (2.3%), industrial production (13%), and total exports (12%), with Tamil Nadu and West Bengal being major contributors.
• Tamil Nadu's textile exports were $7.99 billion in 2024-25, representing 26.81% of India's total, while West Bengal exports approximately 12% of its handloom and textile products.
• Sitharaman proposed Samarth 2.0 for textile skilling, an integrated program for the sector including textile parks, a National Fibre Scheme, and a National Handloom and Handicraft Programme.
• Experts view these announcements as both political and financial, aiming to boost exports and counter competition from countries like Vietnam, Bangladesh, and China.

Why It Matters: Budget 2026 prioritizes India's textile sector with new programs, strategically timed before state elections.