Union Budget 2025-26 to encourage textile sector

The Indian apparels and textile industry is worth approximately US$ 176 billion, which is the largest contributor to the country’s GDP. Contributes about 2 percent. This accounts for about 11 percent of manufacturing output. Textile industry is one of the largest sources of employment generation in the country, it directly It provides employment to more than 45 million textile workers. India is the sixth largest exporter of apparels and textiles. Its share in global trade in this region is about 4 percent. Share of textiles and apparels (T&A) including handicrafts in the country’s total merchandise exports. At present it is about 8 percent. These areas are the focus areas of the government like Make in India, Skill India, women empowerment and rural youth employment. Fully integrated with key initiatives.

An expenditure of ₹5,272 crore was announced for the textile ministry in the budget for the year 2025-26. This was an increase of about 19 per cent over the budget estimates for 2024-25 (Rs 4417.03 crore), and The highest in years. The budget of the investment scheme related to clothing production will be increased from Rs 45 crore (BE) in the year 2024-25 to Rs 1148 crore this year. Crore has been increased to Rs. Production Linked Incentive Scheme (PLI) for Textiles to increase the manufacturing capabilities of the country And to increase exports, an investment of Rs 10,683 crore is being made over a period of five years. Approved financial expenditure. It focuses on emerging sectors such as man-made fibers (MMF), MMF apparels and technical textile sector. to enable these areas to achieve size and scale, and Can become competitive at the global level.

‘Mission for Productivity’ has been announced in the Union Budget year 2025-26. This 5 year mission will significantly improve the productivity and sustainability of cotton farming. This would encourage varieties of cotton with extra long staples. This mission is jointly implemented by the Ministry of Agriculture and Family Welfare and the Ministry of Textiles. Janga.

National Technical Textiles Mission of the Ministry of Textiles aims at (i) Research, Innovation and Development, (ii) Promotion and on market development, (iii) education and skills and (iv) promotion of exports in technical textiles. Is concentrated. List of two more types of shuttle-less looms fully exempted textile machinery in the budget Has been included in. Shuttle-less looms for use in textile industry Repier looms (less than 650 meters per minute) and shuttle-less Duty on ‘air jet loom’ (less than 1000 meters per minute) to be reduced from existing 7.5 per cent to zero. Has been given.

The basic customs duty rate on knitted fabrics falling under nine tariff lines will be reduced to “10 per cent or 20 per cent”. Budget announcement of increase from “percent” to “20 percent or Rs 115 per kg, whichever is higher”, woven Will strengthen the domestic textile industry by banning cheap import of manufactured clothes. This measure will encourage the use of domestically produced textiles, utilize capacity And encourage investment in local manufacturing.

The budget provides a platform to micro, small and medium enterprises (MSMEs) to bring about transformative reforms in the economy. Has been identified as the source. It is important for the textile sector because of India’s textile and apparels production capacity. The majority is accounted for by MSMEs, which account for more than 80 percent of the sector. Provisions like amendment in classification norms for MSMEs, availability of credit to them with guarantee cover. Higher efficiency of scale, technological upgradation and better access to capital along with significant growth in Will help in gaining access. With the revised classification, more units will now come under MSME.

To take forward the above agenda and promote the Indian textile industry, a mega event – India Tax 2025 is being organized by 11 leading textile industry organizations and is being Supported by Ministry of Textiles. Bharat Tax 2025 is the largest program of its kind in the world, both in scale and focus. This will happen because it covers the entire textile industry, from raw materials to finished products and accessories. Will be available as a ‘one-stop’ solution for the value chain. Built around the twin themes of sustainable global value chains and textile sustainability – it The program focuses on ‘Sustainability, Innovation and Global Collaboration’. The main event will be held from 14-17 February, 2025 at Bharat Mandapam. In this, the entire value chain of textile from raw materials to finished products will be provided appropriate policy support. will be covered, while accessories, apparels, machinery, colors and chemicals and handicrafts like Related Exhibitions Held at India Expo Center & Mart Greater Noida from 12th to 15th February, 2025 Will be done. To make India self-reliant in the complete raw material value chain, attract more investment, To increase domestic market size and exports, and ensure large-scale livelihood opportunities Efforts to sustain and enhance our capacity to build can be further strengthened with appropriate policy support. Will need to do.

(Giriraj Singh)

Union Textile Minister