Karnataka has notified its new Textile and Apparel Policy 2026–31, targeting ₹20,000 crore in investment and five lakh new employment opportunities over the next five years. The policy, along with its incentives and concessions package, came into effect on September 30 and will remain valid for five years or until a new textile policy is announced.
The notification marks the first time that the state’s Department of Textiles has approved a proposal to provide ₹4 crore in financial support for implementing a new textile policy, according to the report published by Prajavani. The policy is intended to expand textile and apparel industries beyond Bengaluru and promote industrial growth with greater regional balance.
As part of that objective, Karnataka has identified 34 taluks as special-priority taluks. Eligible new textile and apparel units established in these locations will receive the general facilities available under the policy, along with additional incentives and concessions. The notification does not specify in the supplied report the individual incentive amounts or the eligibility thresholds for units seeking the benefits.
The policy also expands the scope of textile-sector support to include silk reeling and spinning activities linked to silk-yarn production. This is the first time these activities have been brought within the coverage of the state’s textile policy, with the stated aim of strengthening Karnataka’s silk-production chain and creating new opportunities for related industries.
The PM-MITRA park in Kalaburagi has been given a separate incentive focus. Eligible units established at the Pradhan Mantri Mega Integrated Textile Region and Apparel park will receive special incentives and concessions under the policy. The move is intended to encourage industrial investment and employment creation in the Kalyana Karnataka region, where the park is positioned as a major textile and apparel manufacturing location.
The policy identifies textile manufacturing, technical textiles, handlooms, silk, skill development, exports and sustainable production as priority areas. The government’s stated objective is to develop Karnataka into a global textile and apparel manufacturing hub. Its implementation will now determine whether the investment and employment targets translate into new production capacity, supply-chain activity and jobs across the priority taluks and the Kalaburagi park.