Sitharaman proposes a new National Institute of Design in eastern India. 'A good push'

Finance Minister Nirmala Sitharaman’s Budget 2026 has a five-pronged approach for the growth of the textile sector of the country. One key element of the proposed budget is placing design education and creative skills at the centre of the government’s education and employment strategy, outlining measures to align learning with jobs, enterprise and services-led growth.

“The Indian design industry is expanding rapidly, and yet there is a shortage of Indian designers. I propose to establish, through a challenge route, a new National Institute of Design (NID) to boost design education and development in the eastern region of India,” the finance minister said.

Samarth 2.0, one of the proposed measures, will modernise and upgrade the textile skilling ecosystem through collaboration with industry and academic institutions. 

“ It is a welcome announcement because when I was trying to apply to fashion institutes from Assam, the entrance exams clashed with state board exams. Now we have an NID in my hometown, Jorhat and the National Institute of Fashion Technology in Shillong. Study of Muga silk is also introduced in the syllabus, which is a good push,” said Sushmita Choudhury, a fashion designer and former student of the International Institute of Fashion Design, Hyderabad.

7 NIDs and 16 NIFTs

The NID is a group of autonomous public design institutes in India, the first of which was established in 1961 in Ahmedabad. Currently, there are seven NIDs in India and 16 NIFTs that focus on textile designing.

The latest NID was set up in Jorhat in 2019, while NIFT Srinagar was the last one to be set up in 2016.

“An increasing number of institutes can also dilute the quality of education, because they need highly trained faculty and well-equipped design labs,” said stylist Neha Sinha, a former student of NIFT, Chennai.

The Indian fashion design industry had a market value of approximately ₹15.1 lakh crore in 2023 and is expected to reach around Rs 45.3 lakh crore by 2032.

Indian luxury labels are also transitioning from niche offerings to becoming established institutions.

A majority of Indian consumers now prefer shopping from homegrown and small businesses, as per a 2025 report. The survey, conducted with YouGov across 18 states with 5,000 respondents, found that  58 per cent of Indians choose local brands.

“ While new institutes are being set up, the curriculum needs to change because students are not taught how to set up a brand, or even taught about GST. They are taught to make a cost sheet, but not how to price the final garment. That’s why students end up working for other designers, instead of learning how to set up their label,” said Choudhury.