GG News Bureau
New Delhi, 4th Feb. Union Finance Minister Nirmala Sitharaman’s Union Budget 2025-26 has earmarked an allocation of Rs. 5272 crores for the Ministry of Textiles. This is a 19% increase over the previous year’s budget estimate of Rs. 4417.03 crores.
Key announcements include the introduction of a five-year Cotton Mission aimed at boosting cotton productivity, especially extra-long staple varieties. The mission will support farmers with science and technology, aligning with the 5 F principle and enhancing both farmer income and domestic cotton production.
The Budget also promotes the domestic production of technical textiles, including agro-textiles, medical textiles, and geo-textiles, by adding two types of shuttle-less looms to the list of fully exempted textile machinery. The reduction of duties on Rapier Looms and Air Jet Looms will enhance the modernization and capacity of the weaving sector.
Additionally, the Budget has increased the Basic Custom Duty on knitted fabrics to boost the competitiveness of Indian manufacturers and curb cheap imports. A focus on handicraft exports will allow an extension of the export timeline to one year, benefiting the sector with duty-free imports for raw materials.
With 80% of India’s textile industry driven by MSMEs, the Budget is expected to provide enhanced credit, create new manufacturing missions, and establish a supportive environment for the sector’s growth.
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