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Karnataka government has announced a new textile policy which will replace the current textile policy "Survarna Vastra Neeti" which was in effect from 2008-2013. The new policy will come into effect from 2014 is classifying the state into 3 zones with the zone 1 is classified as backward which will get maximum benefits, while zone 2 will get marginal benefits and zone 3 which is near urban area like Bangalore will receive no benefits. Besides this, the policy also provides credit linked subsidy of 15-20% for large textile projects where investment ranging from Rs. 100 million to 990 million as well as projects of SME's.

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