New Delhi: Union Finance Minister Nirmala Sitharaman has proposed a National Handloom and Handicrafts programme to integrate and strengthen existing schemes and ensure targeted support for weavers and artisans.
In her Budget speech, Sitharaman said, “For the labour-intensive Textile Sector, I propose an Integrated Programme with 5 sub-parts”. Under these five sub-parts, she announced the National Fibre Scheme for self-reliance in natural fibres, such as silk, wool, and jute, man-made fibres, and new-age fibres.
The Ministry of Textiles has received an allocation of Rs 5279.01 crore in the Union Budget 2026-27.
“I propose to launch the Mahatma Gandhi Gram Swaraj initiative to strengthen khadi, handloom and handicrafts. This will help in global market linkage and branding. It will streamline and support training, skilling, quality of process and production,” said Sitharaman in her speech.
India has lately seen a rise in demand for handloom and handwoven fabrics, mostly fuelled by influencers.
“Eri silk of Assam and Meghalaya are being increasingly used by a lot of brands and even designers. But they do not attribute it to Assam, which means the weavers do not really get the business. Also there has never been a standardisation of fabric per metre of these handloom fabrics. So there’s a divide between those who have jacked-up prices in a way that most people cannot afford and those weavers who barely earn a living,” said Susmita Choudhury, founder of Nirlojyo, a clothing brand that works with indigenous textiles.
Sitharaman’s budget announcement brings together weavers and village industries through the One District One Product initiative.
“Even if we push for Khadi and handloom or even if it is articulated in the Budget, not a lot will change behind the scenes. The situation is dire in places like West Bengal and Odisha. In Bengal, there is still the mahajan system in place where some get to own karkhanas and weavers are paid meagre daily wages,” said Aishani Gupta, owner of a small business that deals in handloom sarees and fabrics.
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Textile and US tariffs
In India, 65 handloom products and 6 product logos are registered under the GI Act. From Assam’ muga silk to the Mysore silk of Karnataka, and the Chakhesang shawls of Nagaland, the Geographical Indication (GI) tag has been given to various textile and textile products.
Celebrities and influencers have, on various occasions, worn these GI-tagged products, adding to their visibility. At the inauguration of the Ram Temple in 2024, actor Alia Bhatt wore a custom-made turquoise blue Mysore silk saree, with intricate hand paintings of important scenes from the Ramayana.
“Celebrities and influencers tend to wear khadi and Indian handlooms for desi events, or for the national awards. But when they attend a global event like the Met Gala or award shows abroad, khadi is not the first or even the fifth choice. One reason is that different silhouettes have not been experimented with khadi. For instance, no one has made a khadi gown that one can wear to a fashion week in Paris or London,” said Neha Sinha, a fashion stylist.
The Budget envisions a global stage for Indian handlooms, especially through the Tex-Eco Initiative that is aimed at promoting globally competitive and sustainable textiles and apparels.
These Budget announcements also come amid concerns of severe damage to India’s textile sector due to US tariffs.
The US is the single-largest market for India’s textile and apparel exports, accounting for about 30 per cent of India’s total textile and garments exports. And the tariffs were imposed when the apparel exporters were already trading on very slim margins.
“The current budget announcements are focusing on long-term approaches. We need to find other countries to export to to offset the current situation while working with the USA to rework the tax bracket. Handloom and khadi products are our strengths but currently only account for a tiny portion of the exports (under 5 per cent) and can be our USP if brought into the forefront,” said Pooja Kapoor, a designer who also consults companies exporting textiles and apparels.
(Edited by Aamaan Alam Khan)