The Union Budget 2026–27 has brought positive news for the home textile sector, especially for manufacturers who depend on powerlooms for producing furnishing fabrics, towels, bed linen, and upholstery materials. The government’s decision to support powerloom upgradation and modernisation is expected to improve fabric quality, productivity, and cost efficiency for home textile units across India.

Powerlooms form the backbone of home textile manufacturing, particularly in clusters that produce cotton and blended fabrics used in bedsheets, curtains, cushion covers, and bath textiles. With financial and policy support announced in the Budget, manufacturers will be able to adopt better machinery, improved weaving technology, and energy-efficient looms, helping them meet both domestic and export quality standards.

Industry experts believe that upgraded powerlooms will reduce defects, improve fabric consistency, and enable producers to create value-added Home textiles that are in demand in global markets. This is especially important as international buyers increasingly look for durable, well-finished, and sustainable home furnishing products.

The Budget’s focus on strengthening the textile value chain is also expected to benefit small and medium home textile units, which often struggle with outdated equipment and rising production costs. Easier access to modern technology can help these units increase output while maintaining competitive pricing.

Overall, while the policy announcements also cover other textile segments, the home textile industry stands to gain indirectly but significantly from the powerloom upgradation drive. Improved infrastructure, better fabric quality, and higher productivity are likely to support export growth, employment generation, and long-term stability in the home textile sector.