Karnataka has notified its Textile & Apparel Policy (4.0) 2026-31, targeting Rs 20,000 crore in domestic and foreign investment and five lakh new jobs over five years, with a proposed financial outlay of Rs 4,000 crore.
The policy, effective from September 30, aims to position Karnataka as a globally competitive textile and apparel manufacturing hub by promoting investment, technology upgrades, technical textiles, exports, skill development and sustainable manufacturing.
To support regional growth beyond Bengaluru, the government has identified 34 focused taluks where eligible new textile and apparel units will receive additional incentives and concessions. Special incentives will also be available to eligible units at the PM MITRA Park in Kalaburagi, supporting textile development in Kalyana Karnataka and smaller cities.
For the first time, the policy includes silk yarn production, including silk reeling and spinning, to strengthen Karnataka’s silk value chain and encourage value-added manufacturing.
The policy also focuses on technical textiles, research and innovation, industry-academia collaboration, export market access and manufacturing upgrades. It promotes sustainable manufacturing through eco-friendly technologies, circularity, carbon-footprint reduction, sustainability partnerships and certifications.
The handloom sector will receive support for technology upgrades, financial assistance and market development. Karnataka’s nine GI-recognised traditional textile products will also receive branding, marketing and financial support.
The policy will remain valid for five years or until a new textile policy is notified, whichever is earlier.
