In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman unveiled a series of new initiatives to boost the domestic production of technical textiles. Highlighting the importance of these specialized fabrics, used in sectors like agriculture (agro-textiles), healthcare (medical textiles), and construction (geo-textiles), Sitharaman said, the budget aims to make India a major player in this growing market.

A key component of the government’s plan involves incentivizing the adoption of modern manufacturing technologies in this segment. For this, it has exempted two new types of shuttle-less looms from import duties. This will help make these advanced machines more accessible to domestic manufacturers, driving innovation and increasing production efficiency, affirmed Sitharaman. Modernizing the manufacturing base is crucial to competing globally, she added.

Addressing the pricing dynamics of the industry, Sitharaman announced a revision to the Basic Customs Duty (BCD) on knitted fabrics. This adjustment impacts nine tariff lines, shifting from a variable rate of 10 per cent or 20 per cent to a fixed rate of 20 per cent or Rs 115 per kg, whichever is higher. This change aims to create a more predictable and stable tariff structure, which the government believes will benefit the domestic textile industry. The goal is to encourage self-reliance and promote growth by ensuring fair competition against imports.

These combined measures are expected to provide a significant boost to India's technical textile sector. By encouraging investment in advanced machinery and streamlining the tariff structure, the government hopes to foster innovation, improve product quality, and ultimately increase the global competitiveness of Indian technical textiles.