Karnataka government announces new Textile and Apparel Policy
The Karnataka government has launched a new Textile and Apparel Policy for 2026-2031 to attract ₹20,000 crore in investment and create 5 lakh jobs. The policy focuses on regional development in tier-2 and tier-3 cities and includes support for the handloom sector.
Why it matters
This policy aims to boost industrial growth and employment in specific regions of India, potentially reshaping the local textile economy.
The Karnataka government announced a new Textile and Apparel Policy 2026-2031, with an aim to secure ₹20,000 crore in domestic and foreign direct investment across Karnataka’s textile value chain over the next five years. The policy also aims to create 5 lakh new jobs in the sector, with a focus on Kalyana Karnataka and tier-2/3 cities.
The policy was introduced in accordance with the 100-day campaign programmes of the Chief Minister and was approved by the Cabinet.
According to the government, special emphasis has been laid on 34 taluks to promote new investments and generate employment. Units in these taluks are eligible for additional incentives and concessions under the policy. Activities related to silk yarn production, including silk reeling and silk spinning, have been brought within the scope of the policy.
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