Clothing Manufacturers Association of India (CMAI) President Santosh Katariya has welcomed the Union Budget 2025-26, citing key benefits for the textile sector.
While no direct incentives were announced, he highlighted the boost for MSMEs, especially micro enterprises, and the launch of the Cotton Mission as significant steps. Measures to enhance export competitiveness, domestic manufacturing, and ease of doing business were also praised.
On the consumption front, Katariya noted that reduced income tax rates would increase disposable income, potentially driving higher demand. Adjustments in TDS and TCS limits are also expected to support consumption. Additionally, the reduction in basic customs duties on select textile machinery is seen as a positive move.
However, he cautioned that any hike in GST rates on textiles and apparel could offset these advantages. "A big thumbs up to the budget, provided there are no surprises in the fine print," he concluded.
