In his Union Budget 2006-07 speech,  Indian Finance Minister, Shri P. Chidambaram said that having identified the growth potential of the textile industry, particularly cotton textiles, the Indian government has proposed increasing the allocation for its Technology Upgradation Fund Scheme (TUFS) from Rs435 crore ($98.12 million) to Rs535 crore. TUFS has considerably helped small powerlooms and large textile industries to modernise and face global challenges and has made Indian textiles more competitive in the international market.

The minister also added that the government intends to provide Rs189 crore for a scheme of Integrated Textiles Parks (SITP). Under this scheme, seven parks have been sanctioned and ten parks have been identified for development.