The Ministry of Textiles has officially set the operationalization of the Union Budget 2026 into motion, convening the inaugural National Industry Consultation at Vanijya Bhawan on February 19.
The session focused on the immediate rollout of two flagship programs: the Textile Expansion and Employment (TEEM) Scheme and the Tex-Eco Initiative. With a projected market value of $350 billion by 2030, the government is emphasizing a structural shift toward high-value manufacturing and sustainable practices to secure a $100 billion export target.
Scaling manufacturing and modernization
The TEEM Scheme serves as the cornerstone of the government’s 2026 strategy, designed to modernize the fragmented weaving, processing, and garmenting segments. By offering capital support and technology upgrades, the mission aims to mobilize fresh investments into traditional clusters. Rohit Kansal, Additional Secretary (Textiles), highlighted, the budget’s integrated framework is intentionally ‘textile-centric,’ focusing on labor-intensive segments to generate large-scale employment for women and rural youth. Current estimates suggest these measures could bridge the productivity gap with regional competitors like Vietnam and Bangladesh.
Sustainability as a competitive moat
Under the Tex-Eco Initiative, the ministry is institutionalizing circularity and resource efficiency as core requirements for global trade. The program encourages green manufacturing and provides a roadmap for ESG compliance, which is increasingly becoming a non-tariff barrier in European markets. To support this transition, the budget extended the export obligation period for garment and leather exporters from six months to one year, providing critical working capital flexibility.
The Ministry of Textiles oversees India's entire textile value chain, from natural fibers to premium apparel. It prioritizes the PM MITRA Mega Textile Parks and technical textiles to boost global competitiveness. Growth plans target a 15-20 per cent acceleration over five years, supported by an FY27 allocation of Rs 5,279 crore.
