The textile industry welcomes the integrated support package announced in the Budget, aimed at boosting growth, competitiveness, and employment.
Despite being impacted by higher US tariffs, the textile industry has largely welcomed the announcements made for the sector in the Union Budget 2026, though concerns remain over the continuation of customs duty on cotton.
Industry experts said the tariff-affected textile sector and its entire value chain have received support through a range of schemes announced in the Budget. These initiatives, combined with ongoing and upcoming free trade agreements (FTAs), are expected to expand market access for domestic textile manufacturers, according to Gautam Shahi, Director at Crisil Ratings.
Vijay Agarwal, Chairman of the Cotton Textiles Export Promotion Council (TEXPROCIL), said the Integrated Textile Initiative announced in the Budget aims to protect and strengthen traditional textile clusters while also promoting the use of new fibres. He welcomed measures such as permitting sales from Special Economic Zones (SEZs) to Domestic Tariff Areas (DTAs) at concessional tariffs, simplification of customs clearance procedures, and the removal of the ₹10 lakh value cap per consignment on courier exports.
A. Sakthivel, Chairman of the Apparel Export Promotion Council (AEPC), said the Budget provides a clear roadmap for strengthening India’s textile and apparel ecosystem, with emphasis on self-reliance, sustainability, employment generation and global competitiveness.
Confederation of Indian Textile Industry (CITI) Chairman Ashwin Chandran noted that the Budget’s focus on improving logistics infrastructure and the proposal to constitute a High-Level Committee on Banking would also benefit the textile sector by improving access to finance and easing operational bottlenecks.
Southern India Mills Association Chairman Durai Palanisamy said the Capital Support Scheme for Modernization would enable textile units to upgrade technology and improve efficiency. However, he reiterated the industry’s demand for the removal of the 11% import duty on all varieties of cotton to help achieve the government’s growth vision for the sector.
Tiruppur Exporters’ Association President K.M. Subramanian said the Budget strikes a balance between supply-side reforms, farm-to-factory linkages and export requirements. R.K. Vij, President of the Textile Association (India), said the focus on capacity building and technical textiles is encouraging, but added that customs duties on cotton, man-made fibres and other raw materials should have been addressed.
Sanjay K. Jain, Chairman of the Indian Chamber of Commerce’s National Textile Committee, said the Budget announcements would help the industry capitalize on opportunities arising from FTAs. Prabhu Dhamodharan, Convenor of the Indian Texpreneurs Federation, said raw material security and competitive pricing are crucial for global competitiveness, and the Budget attempts to address these concerns.
Shaleen Toshniwal, Chairman of the Manmade and Technical Textiles Export Promotion Council (MATEXIL), said the proposed schemes would help meet fibre requirements of the textile and clothing sector and support India’s goal of achieving textile and apparel exports worth USD 100 billion by 2030.
G. Arulmozhi, President of the Open-End Spinning Mills Association, welcomed the thrust on increasing container production domestically and the emphasis on technical textiles. M. Jayapal, Chairman of the Recycled Textile Federation, also described the Budget measures as positive for the sector.
However, the South India Spinners Association pointed out that while the Budget announcements are encouraging, textile mills continue to face cost pressures and will require sustained policy support going forward.
News Courtesy : The Hindu