(MENAFN- KNN India)
New Delhi, Feb 1 (KNN) The Union Budget 2025-26 has received strong endorsement from the Confederation of Indian Textile industry (CITI), marking a significant commitment to bolstering India's textile and apparel sector.
The budget allocation for textiles has seen a remarkable increase of 57.7 percent compared to the revised 2024-25 budget, primarily driven by an enhanced allocation of Rs 1,148 crore under the Production Linked Incentive (PLI) scheme.
CITI Chairman Rakesh Mehra has expressed particular appreciation for the introduction of the Mission for Cotton Productivity, addressing a longstanding industry demand.
The initiative aims to enhance cotton farming efficiency and promote extra-long staple cotton varieties, potentially reducing India's dependence on imports for specialized cotton varieties while improving overall productivity and sustainability in the sector.
The budget's technology-focused approach demonstrates a clear vision for establishing a globally competitive textile industry.
Several strategic initiatives have been introduced, including revised tariff structures for knitted fabric categories, customs duty exemptions for additional shuttleless looms supporting technical textiles, and the establishment of an Export Promotion Mission.
These measures align with the sector's ambitious target of achieving a USD 350 billion market size by 2030. The government's emphasis on MSMEs, which constitute over 45 percent of India's exports, has been particularly noteworthy.
While the enhanced credit availability with guaranteed cover for MSMEs has been welcomed, Mehra noted that the industry continues to advocate for a hybrid scheme combining upfront capital subsidy with performance-based incentives, specifically tailored for MSME growth in the textile sector.
The implementation of the new tax regime is expected to have positive implications for the textile and apparel industry through increased consumer spending power.
According to Mehra, the anticipated rise in disposable income will stimulate demand across various textile segments, creating opportunities for both small and large industry players.
CITI maintains an optimistic outlook regarding import-related modifications, particularly concerning extended timelines for end-use compliance.
The industry body anticipates similar flexibility for products under Quality Control Orders (QCOs), which would enhance supply chain efficiency throughout the textile value chain.
(KNN Bureau)
MENAFN01022025000155011030ID1109156571
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.