Industry leaders say cluster revival, textile parks and MSME funding could improve competitiveness and exports
Industry stakeholders have welcomed the Union Budget 2026–27’s focus on MSMEs, cluster-based manufacturing and textile infrastructure, saying the measures could improve scale, competitiveness and long-term industrial growth.
The announcement of a ₹10,000 crore MSME Growth Fund, revival of 2,000 industry clusters, and the development of mega textile parks with modern infrastructure are expected to improve technology access and production capabilities for small and medium enterprises.
Post-Budget reaction by Rachit Soota, Founder, RYZ:
“Reviving 2,000 textile clusters and introducing a ₹10,000 crore MSME growth fund is a big moment for India’s textile story. Mega textile parks with modern infrastructure can enable scale, innovation and sustainable production, helping Indian brands compete globally while building in India for the world.”
Post-Budget reaction by Nitin Jain, Founder, IVYN:
“The proposal to revive industry clusters, create a ₹10,000 crore MSME growth fund, and establish mega textile parks signals long-term commitment to India’s manufacturing backbone. These measures can modernise the textile and garment ecosystem and strengthen global competitiveness.”
Post-Budget reaction by Mukesh Pandey, Director, Rupyaa Paisa:
“The combined focus on cluster development and dedicated growth capital addresses both structural and financial challenges faced by MSMEs. If implemented effectively, this can enhance competitiveness, formalisation and credit access.”
Post-Budget reaction by Shashi Mathews, Partner, CMS INDUSLAW:
“Announcements under Samarth 2.0 and the proposal for mega textile parks are welcome from an international trade perspective, as they can help Indian manufacturers and exporters grow while responding to evolving global trade conditions.”
Experts added that customs duty rationalisation for select inputs and continued support for domestic manufacturing could help strengthen local supply chains and reduce cost pressures.
Overall, stakeholders said the Budget’s integrated approach — combining infrastructure, financing and cluster-led development — could help MSMEs scale operations, generate employment and contribute more significantly to India’s manufacturing and export growth.