01 February 2025, Mumbai
India’s textile sector gets a major push in the new budget, with allocations rising sharply from Rs 3,342 crore (FY 24-25 revised) to Rs 5,252 crore. Increased funding for ATUF and PLI schemes will accelerate industry incentives.
A five-year Cotton Mission aims to improve yields from the current 450 kg/hectare well below the global average of 800 kg enhancing raw material availability for cotton-based industries. A new 20 per cent or Rs 115/kg import duty (whichever is higher) on all knitted fabrics will curb undervalued imports, benefiting the local MMF sector.
Shuttleless looms now enjoy duty-free import under technical textiles machinery. Higher disposable incomes from a consumption-driven budget are expected to boost apparel and home textile sales. With MSMEs and women entrepreneurs dominating textiles, targeted schemes will directly benefit manufacturing.
The budget signals strong support for domestic production, higher efficiency, and industry growth.
— Sanjay K Jain, Chairman, ICC National Textiles Committee & MD, TT Limited
