Union Textiles Minister Giriraj Singh on Thursday, 28 May 2026 announced that the Union Cabinet has approved a five-year extension of the SARTHAK-PDS scheme with a financial outlay of ₹25,530 crore, signalling continued government support for the labour-intensive textile sector.

Context

Singh shared the Cabinet decision via the NaMo App, posting: 'कैबिनेट ने SARTHAK-PDS योजना को 5 साल के लिए बढ़ाया, ₹25,530 करोड़ का प्रावधान' ('Cabinet has extended the SARTHAK-PDS scheme for 5 years, with a provision of ₹25,530 crore'). The announcement confirms a multi-year budgetary commitment to a scheme under the Ministry of Textiles.

The Cabinet approval is the apex executive decision required for such scheme extensions in India. Decisions of this scale typically follow inter-ministerial consultations and a formal note to the Cabinet Committee on Economic Affairs or the full Cabinet.

Policy Backdrop

India's textile ministry has a long track record of extending multi-year support programmes for decentralised segments of the industry. The Technology Upgradation Fund Scheme (TUFS), launched in 1999, is among the earliest such instruments and has seen multiple renewals over the decades — establishing a pattern of continuity for capital-intensive and employment-heavy sub-sectors.

The SARTHAK-PDS scheme falls within this broader policy lineage of providing sustained financial support to powerloom weavers and textile MSMEs — segments that together account for a significant share of India's textile employment and export basket. An outlay of ₹25,530 crore over five years translates to an average annual commitment of approximately ₹5,106 crore, underscoring the government's intent to maintain programme momentum.

Stakeholders and Impact

Powerloom weavers and small and medium textile enterprises are the primary beneficiaries of schemes under this architecture. These segments are concentrated in states such as Maharashtra, Tamil Nadu, Gujarat, Uttar Pradesh and Andhra Pradesh, and are significant contributors to rural and semi-urban employment.

Continuity of funding is particularly important for MSMEs that plan capital investment and working-capital cycles around assured government support. A five-year horizon, as approved by the Cabinet, provides the planning certainty that smaller operators require to commit to technology upgrades or workforce expansion.

What's Next

The Ministry of Textiles is expected to release operational guidelines, a fund-disbursement schedule and eligibility criteria for the extended scheme in the coming weeks. Stakeholders and state governments will watch for any revisions to the scheme's component structure or targeting criteria compared to the previous cycle.

Mid-term evaluation reports and quarterly fund-release data, once published, will be key indicators of whether the ₹25,530 crore outlay translates into on-ground impact for weavers and textile enterprises across India's textile belts.