Gujarat increases textile sector outlay to US $302 million in FY27 Budget, strengthening infrastructure, investment and industry growth.
Gujarat has stepped up its financial commitment to the textile sector, increasing the allocation under the Development of Textile Industry scheme to Rs. 2,755 crore (US $302 million) in the 2026–27 State Budget.
The enhanced outlay was announced by Kanubhai Desai while presenting the Budget in the Gujarat Legislative Assembly. The allocation marks a sharp rise from Rs. 2,000 crore in 2025–26 and Rs. 2,036.47 crore in 2024–25, reflecting the state government’s continued focus on strengthening Gujarat’s textile manufacturing base and export competitiveness, particularly for MSMEs.
The expanded budget under the Development of Textile Industry scheme is expected to support capacity expansion, technology upgradation and fresh investments across the textile value chain. The higher, subsidy-driven allocation signals an intensified push to improve industrial infrastructure and scale within the sector.
Alongside large-scale manufacturing, the Budget continues support for cottage industries, handloom and small-scale textile ecosystems through grants, subsidies and institutional assistance. These measures cover cooperative production models, skill development, research support and export facilitation for smaller producers.
Financial assistance to the Gujarat State Handicraft Development Corporation has been increased to Rs. 48.05 crore for 2026–27, compared with Rs. 41.86 crore in the previous year, aimed at strengthening institutional support and market access. In addition, Rs. 23 crore has been allocated for design competitions, exhibitions and promotional initiatives to encourage innovation and improve visibility in the handicrafts segment.
To further strengthen export-oriented sectors such as textiles and apparel, the Budget proposes the establishment of a Gujarat State Export Promotion Council, with an allocation of Rs. 5.90 crore. The council is expected to help MSME exporters expand market access. Provisions enabling handloom and handicraft stakeholders to leverage e-commerce platforms also indicate a growing emphasis on digital integration.
Overall, the Budget outlines a dual approach—scaling industrial textile investments through a higher core allocation, while reinforcing traditional and MSME segments through targeted support, export facilitation and digital initiatives.
Commenting on the move, Southern Gujarat Chamber of Commerce and Industry former president Ashish Gujarati said the increase in allocation demonstrates the state’s continued commitment to implementing the Gujarat Textile Policy. He added that the proposed export promotion council could play a positive role in boosting MSME exports by strengthening institutional support and market access.