Karnataka Notifies Textile & Apparel Policy 2026-31, Targets Rs 20,000 Crore Investment and 5 Lakh Jobs
The five-year policy carries a Rs 4,000 crore outlay and focuses on Kalyana Karnataka, smaller cities, technical textiles, silk, sustainability and exports.
Bengaluru: The Karnataka government has notified its Textile & Apparel Policy (4.0) 2026-31, setting a target of Rs 20,000 crore in domestic and foreign investment and five lakh new jobs in the sector over the next five years. The government has proposed a financial outlay of Rs 4,000 crore to implement the policy.
The policy aims to make Karnataka a globally competitive hub for textile and apparel manufacturing by promoting investment, technology upgrades, technical textiles, exports, skill development and sustainable production.
Push beyond Bengaluru
A central objective is to draw textile and apparel investment away from Bengaluru and encourage more balanced regional industrial growth. The government has identified 34 focus taluks where eligible new units will receive additional incentives and concessions over and above the policy’s general benefits.
Special incentives are also being offered to eligible units set up at the PM MITRA (Pradhan Mantri Mega Integrated Textile Region and Apparel) Park in Kalaburagi. The move is intended to strengthen the textile ecosystem in Kalyana Karnataka, create jobs and attract new industrial investment to the region.
Silk yarn included for the first time
In a notable change, the policy brings silk yarn production, including silk reeling and silk spinning, within its scope for the first time. The inclusion is meant to strengthen the state’s silk value chain and encourage investment in silk-related manufacturing. Karnataka is a major silk-producing state, and the policy seeks to build on that base to promote value addition and employment.
Technical textiles and manufacturing upgrades
The policy seeks to expand manufacturing capacity while encouraging technology upgrades and the production of high-value textile products. It places particular emphasis on technical textiles, specialised products used in healthcare, construction, automotive, agriculture and other industrial applications.
The government plans to promote research, innovation and collaboration among industry, academia and government institutions. The policy also aims to raise textile and apparel exports by improving market linkages and helping enterprises access domestic and international markets.
Sustainability and handloom support
Sustainable manufacturing is another priority. The policy encourages eco-friendly technologies, circularity and measures to cut carbon footprints. The government will support sustainability partnerships and certification to help units meet evolving environmental and international market requirements.
The handloom sector will receive targeted support for technology upgrades, financial assistance and market development, with the policy also seeking to preserve traditional artisan skills and the state’s textile heritage. The nine traditional textile products from Karnataka that hold Geographical Indication (GI) recognition will be supported through branding, marketing and financial incentives.
Validity
The policy and its package of incentives and concessions come into effect on September 30, 2026. It will remain valid for five years or until a new textile policy is notified, whichever is earlier.
