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India Budget FY26: Unravelling opportunities for textile industry

Fibre2Fashion explores the impact of this budget on the Indian textile industry—an essential component of the MSME sector that employs ** million people. The textile sector has witnessed a positive shift, with increased allocations to the Ministry of Textiles and an expanded Production Linked Incentive (PLI) scheme covering both technical textiles and the man-made fibre industry. This sector remains vital to rural livelihoods, particularly through small and medium enterprises (SMEs) engaged in handloom production, one of India&#**;s oldest and most culturally significant textile traditions.

Textile sector – A comprehensive snapshot