New Delhi, February 1, 2025: The Union Budget 2025–2026, which demonstrates the government’s dedication to bolstering India’s textile and apparel industry, is warmly received by the Confederation of Indian Textile Industry (CITI). The budget’s allotment for textiles rose dramatically by 57.7% for 2025–26 in contrast to the updated 2024–25 budget. The PLI scheme’s higher allocation of Rs 1,148 crore for the current year is mostly to blame.
Shri Rakesh Mehra, Chairman of CITI, praised the government for recognising industry’s long-standing desire and establishing the Mission for Cotton Productivity, which will help substantial increases in cotton farming’s sustainability and production, as well as the promotion of extra-long staple cotton types.It will take care of more than just the industry’s worry over cotton’s decline. productivity but will also reduce our dependency on imports for specialized varieties of cotton-like ELS” he added.
He also praised the government’s strategy, stating that the budget aims to create a textile industry that is technologically advanced and globally competitive. In order to support local industry, the government has also revised the tariff items on knitted fabric categories and exempted two By supporting the technical textile industry with additional shuttle-less looms from BCD and establishing an Export Promotion Mission, among other initiatives, the sector will expand more quickly, reaching a market size of US$350 billion by 2030.
The government’s particular attention on MSMEs, which make up over 45% of our exports, is encouraging. The Indian T&A sector is mostly driven by MSME’s. The increased availability of loans with certain coverage for MSMEs would undoubtedly increase the trust of However, the textile industry has been asking for a combination of performance-based incentives and upfront capital subsidies, particularly for MSMEs, and such a program is required for the sector’s desired growth, according to Shri Mehra.
It is anticipated that the implementation of a new tax system would raise disposable earnings, which will boost domestic demand for clothing and textiles. Shri Mehra underlined that increased buying power will stimulate demand in a number of textile markets, helping small and major participants in the sector.
CITI is nevertheless hopeful that items covered by Quality Control Orders (QCOs) would also be subject to import-related relaxations, especially the extended deadlines for end-use compliance. This will increase the textile industry’s operating efficiency and aid to simplify supply networks. value chain.