UP Minister Lauds Budget 2026's Comprehensive Support for Traditional and Modern Industries
Uttar Pradesh's traditional and modern manufacturing base is poised to receive substantial benefits from the far-reaching measures announced in the Union Budget 2026, according to state minister Rakesh Sachan. Speaking on Sunday, the minister highlighted how the budget's focus on strengthening MSMEs, khadi and village industries, the silk sector, and handloom and textile industries would create significant opportunities across the state.
Integrated Textile Programme and Mega Parks
The budget proposes a comprehensive and integrated programme for the textile sector that brings together several key schemes under one umbrella. This initiative combines the National Fibre Mission, the Textile Expansion and Employment Scheme, the National Handloom and Handicrafts Programme, the Tex-Eco Initiative, and Samarth 2.0. These combined efforts aim to boost production capacity, generate substantial employment opportunities, and enhance export capabilities.
The proposed Mega Textile Parks are expected to open up new investment avenues in Uttar Pradesh's textile and apparel industry, creating infrastructure that can support large-scale manufacturing and processing. Sachan emphasized that these provisions would create fresh opportunities for lakhs of entrepreneurs, artisans, and workers associated with MSMEs, khadi, handloom, silk, and textile sectors throughout the state.
Strengthening Rural Economy Through Traditional Industries
A key initiative highlighted by the minister is the proposed 'Mahatma Gandhi Gram Swaraj Pahal', specifically aimed at promoting khadi, handloom, and handicrafts. "This will provide sustainable livelihoods to artisans and weavers by linking traditional industries with modern markets and improving their incomes," Sachan explained. The programme represents a strategic effort to strengthen the rural economy while preserving cultural heritage.
The minister noted that the budget measures would not only generate employment but also strengthen the goal of Aatmanirbhar Bharat by making domestic industries more competitive and self-reliant.
Financial Support and Infrastructure for MSMEs
To bolster the MSME sector, the Budget 2026 proposes substantial financial support including:
- A Rs 10,000 crore SME Growth Fund dedicated to small and medium enterprises
- An additional Rs 2,000 crore infusion into the Aatmanirbhar Bharat Fund
- Expansion of the TReDS platform to ensure timely payments to small enterprises and ease working capital constraints
The introduction of the 'Corporate Mitra' mechanism will provide MSMEs with essential business mentoring, technical support, and market linkages to help them scale their operations and compete more effectively.
Revitalizing Heritage Clusters and Enhancing Exports
The budget also includes a proposal to rejuvenate 200 heritage industrial clusters across the country, including handloom and handicraft hubs. This initiative is expected to give traditional industries in Uttar Pradesh a renewed identity and enhanced competitiveness in both domestic and international markets.
Export-focused incentives form another crucial component of the budget's industrial strategy. These include:
- Duty-free imports for footwear uppers to reduce production costs
- Extended timelines for leather and textile apparel exports to provide more flexibility to exporters
These measures are designed to enhance the global competitiveness of Indian products, particularly those from traditional sectors that have significant export potential.
The comprehensive approach of Budget 2026 toward traditional and modern industries represents a significant opportunity for Uttar Pradesh's economic development, according to Minister Sachan. By addressing both financial needs and infrastructure requirements while creating better market linkages, the budget aims to transform the state's manufacturing landscape and create sustainable livelihoods for millions of workers and artisans.
