Karnataka Notifies Textile & Apparel Policy 2026-31

Karnataka notified its Textile & Apparel Policy (4.0) 2026-31 on 30 September 2026 with a financial outlay of Rs 4,000 crore. The policy aims to attract Rs 20,000 crore in domestic and foreign investment and create 5 lakh jobs in the textile sector over five years.

Textile policy framework

The policy is effective from 30 September 2026 and will remain valid for five years or until a new textile policy is announced. Textile policy in India generally covers incentives for manufacturing, processing, exports, skill development, and infrastructure creation.

Focused taluks and regional incentives

The Karnataka government has identified 34 focused taluks for additional incentives and concessions for eligible new textile and apparel units. A taluk is an administrative subdivision used in several Indian states for revenue and local governance purposes.

The policy extends industrial support beyond Bengaluru and includes special provisions for the Kalyana Karnataka region. Such regional incentive structures are used in industrial policy to distribute investment across districts and taluks.

Silk, technical textiles and PM MITRA Park

For the first time, the policy includes silk yarn production, including silk reeling and spinning. Silk reeling is the process of unwinding silk filaments from cocoons, while spinning converts fibres into yarn.

Special incentives will be provided for eligible units at the PM MITRA Park in Kalaburagi. PM MITRA stands for Pradhan Mantri Mega Integrated Textile Region and Apparel Park, a central scheme for integrated textile infrastructure.

Important Facts for Exams

• Karnataka is a major Indian producer of silk and has a long-established sericulture base.
• Technical textiles are textile products designed for functional use rather than clothing, such as medical textiles and geotextiles.
• Handloom is a traditional textile production method that uses a manually operated loom.
• Export promotion is a standard component of textile policies because textiles are a major labour-intensive manufacturing sector.

Policy priorities

The policy prioritises textile production, technical textiles, handlooms, skill development, exports, and sustainable manufacturing. Karnataka has linked the policy with industrial expansion, employment generation, and value-chain development in silk and apparel manufacturing.