India's UP state earmarks $556 mn to bolster textile sector

13 Feb '26

1 min read

India's UP state earmarks $556 mn to bolster textile sector

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India's Uttar Pradesh state government recently earmarked ₹50.41 billion (~$556.14 million) for the handloom and textile sector in the FY27 budget.
To back handloom and power loom weavers by subsidising electricity costs, ₹44.23 billion was allocated under the Atal Bihari Vajpayee Powerloom Bunker Vidyut Flat Rate Yojana.
The state has set a target of generating 30,000 jobs in the textile sector in FY28.

India’s Uttar Pradesh (UP) state government recently earmarked ₹50.41 billion (~$556.14 million) for the handloom and textile sector in the fiscal 2026-27 (FY27) budget.

To back handloom and power loom weavers by subsidising electricity costs, ₹44.23 billion was allocated under the Atal Bihari Vajpayee Powerloom Bunker Vidyut Flat Rate Yojana.

The measure is expected to lower production expenses, improve margins and enhance the competitiveness of textile clusters.

The state has set a target of generating 30,000 jobs in the textile sector in FY28, linking financial outlays directly with employment creation.

In addition, ₹1.5 billion was proposed under the Uttar Pradesh Textile and Garmenting Policy, 2022, to attract new investment, promote modernisation and encourage value addition in garments and apparel manufacturing, according to media reports from the state.

Fibre2Fashion News Desk (DS)

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