Gujarat Raises Textile Outlay to US$ 302 Million in FY ’27 Budget
Gujarat has boosted its textile-sector allocation to Rs. 2,755 crore (US$ 302 million) for FY 2026–27 under the Development of Textile Industry scheme, up from Rs. 2,000 crore (US$ 219 million) in 2025–26. Announced by Finance Minister Kanubhai Desai, the rise underscores the State’s focus on consolidating its textile leadership and enhancing MSME competitiveness.
The scheme will fund capacity expansion, technology upgrades, and new investments across the value chain. Increased subsidies aim to strengthen industrial infrastructure and scale. Support for cottage industries, handloom, and small-scale units continues through grants, training, and export facilitation.
Funding for the Gujarat State Handicraft Development Corporation rises to Rs. 48.05 crore (US$ 5.28 million), with Rs. 23 crore (US$ 2.52 million) set aside for design contests, exhibitions, and promotions. A new Gujarat State Export Promotion Council will be established with Rs. 5.90 crore (US$ 648,000) to boost exports and MSME market access, including through e-commerce integration.
Overall, the Budget combines expanded industrial investment with targeted support for traditional sectors and digital export initiatives.
Ashish Gujarati, former SGCCI president, said the increased outlay and proposed export council reaffirm the State’s commitment to the Gujarat Textile Policy and MSME growth.
