India's Massive $25B Skill Push for Textiles

India is set to implement a substantial ₹25,000 crore skilling program over the next five years, focusing on the labor-intensive textiles and garments sector. This initiative, known as Samarth 2.0, was announced in the budget for 2026-27.

The program aims to modernize the current skilling framework by fostering closer ties between industry and academic institutions. This collaboration is crucial for preparing workers to meet the evolving technological and industrial requirements within the sector.

Samarth 2.0 represents a significant increase from the ₹740 crore allocated to Samarth 1.0, which supported textile workers until March 2026. The proposal has moved past the Expenditure Finance Committee and awaits final Cabinet approval.

This skilling push is vital as the textiles and garment sector is India's second-largest employer after agriculture, providing jobs to 45 million people. The initiative supports the government's goal to more than double textile and garment exports to $100 billion by 2030, leveraging free trade agreements.

Industry experts have welcomed the move, emphasizing the need for training programs to impart practical, industry-relevant skills that enhance productivity and employability. Training must adapt to rapid technological changes, quality standards, and global buyer demands.

The Samarth 2.0 program will be rolled out through industry partners, academic institutions, and other sector organizations. This effort complements other government measures, such as mega textile parks and capital aid for machinery upgrades, to address productivity gaps and enhance India's export competitiveness against rivals like Bangladesh and Vietnam.