Karnataka government has notified Textile & Apparel Policy (4.0) 2026-31, targeting Rs 20,000 crore in domestic and foreign investment and five lakh new jobs in the state’s textile and apparel sector over the next five years.
The government has proposed a Rs 4,000 crore financial outlay for implementing the policy. The policy aims to position Karnataka as a globally competitive textile and apparel manufacturing hub by promoting investments, technological upgrades, technical textiles, exports, skill development and sustainable manufacturing.
Focus on Kalyana Karnataka and smaller cities
A key objective of the policy is to encourage textile and apparel investments beyond Bengaluru and promote more balanced regional industrial growth.
The government has identified 34 focused taluks where eligible new textile and apparel units will receive additional incentives and concessions over and above the general benefits available under the policy.
The policy also provides special incentives and concessions for eligible units established at Pradhan Mantri Mega Integrated Textile Region and Apparel (PM MITRA) Park in Kalaburagi. The move is aimed at strengthening the textile ecosystem in Kalyana Karnataka while generating employment and attracting new industrial investments to the region.
Silk yarn brought under policy
The policy introduces a significant change by bringing silk yarn production, including silk reeling and silk spinning, within its scope for the first time. The inclusion is aimed at strengthening Karnataka’s silk value chain and encouraging investments in silk-related manufacturing activities.
Karnataka is a major silk-producing state, and the policy seeks to leverage its existing ecosystem to promote value addition and employment across the sector.
Technical textiles and manufacturing upgrades
The policy seeks to expand textile manufacturing capacity while encouraging technological upgrades and production of high-value textile products. It also places emphasis on technical textiles, which include specialised textile products used across sectors such as healthcare, construction, automotive, agriculture and other industrial applications.
The government plans to encourage research, innovation and collaboration between industry, academia and government institutions to strengthen the state’s textile manufacturing capabilities.
The policy also aims to increase textile and apparel exports by improving market linkages and supporting enterprises in accessing domestic and international markets.
Sustainability and handloom sector
Sustainable manufacturing is another focus area of the policy. It seeks to encourage the adoption of eco-friendly technologies, circularity and measures to reduce carbon footprints. The government will also support sustainability partnerships and certification to help textile units meet evolving environmental and international market requirements.
The handloom sector will receive targeted support for technology upgrades, financial assistance and market development, while the policy seeks to preserve traditional artisan skills and Karnataka’s textile heritage.
News Courtesy : MoneyControl