Uttar Pradesh Budget 2026-27 Unveils Major Push for Handloom and Textile Sector
In a significant move to bolster employment-intensive traditional industries, the Uttar Pradesh government has earmarked a substantial sum of Rs 5,041 crore for the handloom and textile sector in the state budget for the fiscal year 2026-27. This allocation signals a robust commitment to fostering large-scale industrial expansion while simultaneously empowering local artisans and weavers.
Powerloom Subsidy Scheme Receives Lion's Share of Funding
A major portion of this budgetary outlay, precisely Rs 4,423 crore, has been designated under the Atal Bihari Vajpayee Powerloom Bunker Vidyut Flat Rate Yojana. This initiative is specifically designed to support handloom and powerloom weavers by subsidising their electricity costs. The government anticipates that this measure will effectively lower production expenses, improve profit margins, and significantly enhance the competitiveness of textile clusters across the state.
Direct Link Between Financial Outlays and Employment Creation
The state administration has set an ambitious target of generating 30,000 new jobs within the textile sector in the upcoming financial year. This goal explicitly links financial investments directly with employment creation, ensuring that budgetary allocations translate into tangible economic opportunities for the workforce.
Additional Initiatives to Modernise and Attract Investment
Beyond the powerloom subsidy, the budget proposes an allocation of Rs 150 crore under the Uttar Pradesh Textile and Garmenting Policy-2022. This funding is aimed at attracting fresh investment, promoting technological modernisation, and encouraging value addition in garments and apparel manufacturing, thereby strengthening the entire textile value chain.
Focused Support for Village and Traditional Industries
Village and traditional industries have also received dedicated attention in this budget. Key schemes include:
- Mukhyamantri Gramodyog Rozgar Yojana: The state aims to generate employment for 16,000 people by facilitating bank loans worth Rs 40 crore to 800 new rural industrial units.
- Pt Deendayal Gramodyog Rozgar Yojana: An allocation of Rs 10 crore will provide interest subsidies on loans for rural enterprises, easing credit access for small entrepreneurs and fostering local business growth.
Preservation and Modernisation of Traditional Crafts
The budget also includes specific provisions for the preservation and development of traditional crafts:
- Rs 7.5 crore has been proposed for the modernisation of the Kambal Utpadan Kendra (Blanket Production Centre) in Khajni, Gorakhpur.
- Rs 13 crore is allocated under the Mati Kala Samanvit Vikas Karyakram to support traditional pottery artisans, ensuring the survival and growth of this ancient craft.
State officials have emphasised that these combined measures are strategically designed to strengthen rural enterprise ecosystems, preserve invaluable traditional skills, and ensure sustainable, inclusive growth in Uttar Pradesh's economy. The comprehensive approach aims to balance industrial advancement with the nurturing of heritage industries that form the backbone of many local communities.
