Synopsis
The Union Budget has allocated Rs 5,272 crore for the Ministry of Textiles for FY26, marking a 19% increase. This budget aims to enhance cotton productivity through a five-year Cotton Mission and support domestic technical textile production.Key Takeaways
- 19% budget increase for textiles
- Rs 5,272 crore allocated for FY26
- Five-year Cotton Mission announced
- Support for technical textiles production
- Customs duty reductions on looms
New Delhi, Feb 1 (NationPress) The Union Budget revealed a 19 percent increase in the Budget Estimates for the Ministry of Textiles for the fiscal year 2025-26, totaling Rs 5,272 crore, compared to the previous year's estimates of Rs 4,417.03 crore.
The Ministry of Textiles stated that to tackle the issue of stagnant cotton productivity, a five-year Cotton Mission has been initiated to enhance cotton yield, focusing on extra-long staple varieties.
Under this Mission, farmers will receive science and technology support. The objective is to boost farmers' income and ensure a consistent supply of high-quality cotton, as stated by the Ministry.
This initiative aims to enhance domestic productivity, stabilizing the availability of raw materials, decreasing reliance on imports, and improving the global competitiveness of India's textile industry, where 80 percent of capacity is driven by MSMEs.
To foster the domestic production of technical textiles like agro-textiles, medical textiles, and geotextiles at competitive rates, two additional types of shuttle-less looms have been exempted from duties.
The duties on Shuttle-less loom Rapier Looms (below 650 meters per minute) and Shuttle-less loom Air jet Looms (below 1000 meters per minute) have been reduced to nil from the previous 7.5 percent.
This adjustment will lower the cost of high-quality imported looms, aiding modernization and capacity expansion in the weaving sector. It will also promote 'Make in India' initiatives in the technical textile domain, encompassing agro textiles, medical textiles, and geotextiles, the Ministry noted.
The basic Customs Duty on knitted fabrics across nine tariff lines was decreased from '10 percent or 20 percent' to '20 percent or Rs 115 per kg, whichever is higher'.
This change will enhance the competitiveness of Indian knitted fabric manufacturers and help mitigate cheap imports.
To support the export of handicrafts, the export period has been extended from six months to one year, with a further extension possible by another three months if necessary.
India stands as the sixth-largest exporter of textiles and apparel, having exported textile goods worth $34 billion in 2023. Over 45 million individuals are directly employed in this sector.
