Karnataka Textile Policy: Rs 4,000 Crore Support To Create 5 Lakh Jobs

Karnataka Textile Policy 4.0 will provide Rs 4,000 crore in financial support and target Rs 20,000 crore investment and five lakh new jobs from 2026-31, with special incentives for 34 priority taluks and the Kalaburagi textile park.

Karnataka has officially announced its new Textile and Apparel Policy 4.0 for 2026-31, with the state government targeting Rs 20,000 crore in investments and five lakh new jobs in the textile and apparel sector over the next five years. Chief Minister D.K. Shivakumar has taken a special interest in shaping the new policy, which aims to strengthen Karnataka's textile industry, attract fresh investments and promote employment across the state.

A Historic First For The Textile Department

The government will implement the policy for the 2026-31 period. For the first time in the history of the Textile Department, officials have approved a financial support package of Rs 4,000 crore for its implementation.

The policy aims to attract Rs 20,000 crore in investments and generate five lakh new jobs in the sector over the next five years. As part of the initiative, the state has identified 34 taluks as special priority areas.

Promoting Textile Industries Beyond Bengaluru

The government plans to expand textile and apparel industries beyond Bengaluru to promote balanced regional development across Karnataka.

Under the new policy, eligible manufacturing units setting up operations in the 34 priority taluks will be eligible for additional incentives and concessions, along with common infrastructure facilities.

For the first time, the policy also covers silk reeling and spinning activities associated with silk yarn production. This is expected to support the expansion of the state's silk and textile ecosystem.

The government is also offering special incentives and concessions to eligible units setting up operations at the PM Mega Integrated Textile Region and Apparel Park in Kalaburagi. The move is aimed at attracting industrial investments and creating more employment opportunities in the Kalyana Karnataka region.