Stories
Karnataka Unveils New Textile Policy: Targets ‘20,000 Crore Investment, 5 Lakh Jobs
- •Karnataka's new Textile & Apparel Policy (4.0) 2026-31 aims for Rs 20,000 crore investment and 5 lakh new jobs over five years, with a Rs 4,000 crore financial outlay.
- •The policy seeks to establish Karnataka as a global textile hub, focusing on investments, tech upgrades, technical textiles, exports, skill development, and sustainable manufacturing.
- •It promotes regional growth by offering additional incentives for units in 34 focused taluks and at the PM MITRA Park in Kalaburagi, strengthening the Kalyana Karnataka region.
- •For the first time, silk yarn production is included, aiming to boost Karnataka's silk value chain and encourage investments in silk-related manufacturing.
- •The policy emphasizes technical textiles, sustainable manufacturing, and supports the handloom sector and GI-recognized traditional textile products through various incentives and market linkages.
Key Questions Answered
The Karnataka Textile and Apparel Policy (4.0) 2026-31 targets Rs 20,000 crore in domestic and foreign investments and aims to generate five lakh new employment opportunities over a five-year period. The government has allocated a financial outlay of Rs 4,000 crore to implement this policy framework.
The policy promotes balanced regional growth by encouraging textile investments beyond Bengaluru and identifying 34 focused taluks where eligible new units receive extra incentives. Additionally, special concessions are provided for units established at the PM MITRA Park in Kalaburagi to strengthen the Kalyana Karnataka region.
For the first time, the policy includes silk yarn production like reeling and spinning to strengthen the silk value chain. It also emphasizes technical textiles, technological upgrades, eco-friendly sustainable manufacturing, and targeted support for traditional handlooms and GI-recognized textile products.
