The Union Budget 2026 announcements on reviving 2,000 textile clusters, launching a ₹10,000 crore MSME Growth Fund, and developing mega textile parks have been widely welcomed by industry leaders as a turning point for India’s manufacturing and textile ecosystem. Founders across activewear, textiles, and MSME-focused financial platforms see these measures as a boost for scale, innovation, sustainable production, and global competitiveness, while also addressing long-standing credit and infrastructure challenges faced by MSMEs and artisans.
"Reviving 2,000 textile clusters and introducing a ₹10,000 crore MSME growth fund is a big moment for India’s textile story. As the founder of a next-gen activewear brand, I see this as an opportunity to empower the backbone of our industry, our MSMEs, our manufacturers, and the skilled artisans who make world-class products possible. Mega textile parks with modern infrastructure can truly change the game by enabling scale, innovation, and sustainable production. If implemented well, this can help Indian brands like RYZ compete globally while proudly building in India, for the world", stated Rachit Soota , Founder at RYZ
Nitin Jain, Founder at IVYN said, "The government's proposal to revive 2,000 industry clusters, create a ₹10,000 crore MSME growth fund, and establish mega textile parks is a strong signal of long-term commitment to India’s manufacturing backbone. These measures will not only strengthen MSMEs but also modernise the textile and garment ecosystem, enabling scale, innovation, and global competitiveness. At IVYN, we strongly believe that Indian textiles and garments are poised to become a dominant global force over the next decade. With supportive policies, infrastructure-led growth, and increasing foreign alignments, the sector is well-positioned to excel on the world stage.”
Also Read: Budget 2026 Highlights: New Income Tax Act, FPI Hike & STT Changes
Rohit Mahajan, Founder and Managing Partner, plutos ONE, stated "The Union Budget 2026 is a decisive step in India’s journey towards becoming a Viksit Bharat, with a strong, execution-led focus on SMEs, MSMEs, skill development, and travel-driven demand creation. The Finance Minister, Nirmala Sitharaman, has clearly shifted the narrative from short-term relief to long-term competitiveness and scale. The announcement of a ₹10,000 crore MSME Growth Fund is a landmark move, aimed at building tariff-resilient, export-ready enterprises rather than subsidy-dependent businesses. This will enable high-potential MSMEs to invest in technology, productivity enhancement, and global market access—key pillars for India’s manufacturing and export ambitions.
He added, "Equally transformative is the integration of GeM with TReDS and the move to make TReDS receivables tradable through asset-backed securities. This structural reform directly addresses the long-standing working capital challenges of MSMEs by converting invoices and receivables into bankable, market-linked assets, thereby lowering the cost of capital and improving liquidity. In this context, Plutos ONE is actively working with Bharat Connect to enable Bharat Connect for Business, focused on invoice-based lending solutions for MSMEs and SMEs. By leveraging digital rails and receivables-based financing, such initiatives align seamlessly with the Budget’s vision of formalisation, credit deepening, and sustainable growth. Overall, Budget 2026 lays a strong foundation for self-reliance, exports, and inclusive economic expansion."
Source : Press Release
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