Lucknow: The govt earmarked Rs 5,041 crore for the handloom and textile sector in the 2026-27 budget, signalling a strong push for employment-intensive traditional industries alongside large-scale industrial expansion.A major chunk, Rs 4,423 crore, was allocated under the Atal Bihari Vajpayee Powerloom Bunker Vidyut Flat Rate Yojana to support handloom and powerloom weavers by subsidising electricity costs.
The measure is expected to lower production expenses, improve margins and enhance the competitiveness of textile clusters. The govt set a target of generating 30,000 jobs in the textile sector in the coming financial year, linking financial outlays directly with employment creation. In addition, Rs 150 crore was proposed under the Uttar Pradesh Textile and Garmenting Policy-2022 to attract fresh investment, promote modernisation and encourage value addition in garments and apparel manufacturing. Village and traditional industries also received focused attention. Under the 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 units. The Pt Deendayal Gramodyog Rozgar Yojana will receive Rs 10 crore to provide interest subsidies on loans for rural enterprises, easing credit access for small entrepreneurs. The budget also proposes Rs 7.5 crore for the modernisation of the Kambal Utpadan Kendra in Khajni, Gorakhpur, and Rs 13 crore under the Mati Kala Samanvit Vikas Karyakram to support traditional pottery artisans. Officials said the combined measures aim to strengthen rural enterprise ecosystems, preserve traditional skills and ensure growth in the state’s economy.
