Karnataka Notifies Textile & Apparel Policy 2026-31 to Boost Investment and Employment

On September 30, 2026, the Government of Karnataka officially notified the Textile & Apparel Policy (version 4.0) for the period 2026-31. This policy aims to stimulate the state’s textile sector by attracting domestic and foreign investments worth Rs 20,000 crore and generating employment for 5 lakh people over five years. The policy carries a financial outlay of Rs 4,000 crore.

Key Highlights of Karnataka Textile & Apparel Policy 2026-31

Policy Duration and Scope

Effective from 30 September 2026, the policy is valid for five years or until superseded by a new textile policy. It focuses on manufacturing, processing, exports, skill development and infrastructure in the textiles and apparel sectors.

Focused Taluks and Regional Incentives

• Karnataka identified 34 taluks (administrative subdivisions) for special incentives and concessions to encourage new textile and apparel units.
• Industrial support extends beyond Bengaluru to include special provisions for the Kalyana Karnataka region, promoting balanced regional development.

Inclusion of Silk and Technical Textiles

• For the first time, the policy explicitly includes silk yarn production processes such as silk reeling and spinning, acknowledging Karnataka’s strong sericulture heritage.
• Special incentives are offered for eligible units located in the PM MITRA Park, an integrated textile infrastructure project in Kalaburagi under the central government scheme.
• The policy prioritizes technical textiles, which are functional textile products like medical textiles and geotextiles, alongside traditional sectors.

Policy Priorities

The Karnataka Textile & Apparel Policy 2026-31 emphasizes:

• Promoting textile and apparel production with a focus on silk and technical textiles.
• Supporting handloom sectors and sustainable manufacturing practices.
• Boosting skill development to enhance workforce capabilities.
• Strengthening export competitiveness to tap into global markets.
• Enhancing value-chain development linking industrial expansion with employment generation.

Exam-Relevant Context

• Karnataka is a key silk producer in India, making policies supporting sericulture important.
• Textile policies often cover incentive structures, export promotion, and regional development to balance investments.
• Understanding PM MITRA Parks is useful as they represent central government initiatives to modernize textile infrastructure.
• The inclusion of technical textiles aligns with India’s broadening textile sector focus beyond traditional clothing to specialized textile products.