A Sakthivel, Chairman of AMHSSC (Apparel Made-ups & Home Textiles Sector Skill Council), has wholeheartedly welcomed the Union Budget for 2025-26, praising its visionary and growth-oriented approach. He expressed his gratitude to the Hon'ble Prime Minister and the Hon'ble Finance Minister for their progressive and impactful budget, which he believes will pave the way for a stronger and more prosperous India.
Sakthivel highlighted that the budget is designed to accelerate growth, promote inclusive development, invigorate private sector investment, uplift household sentiment, and enhance the spending power of India's rising middle class. These measures are expected to drive rapid economic progress and secure a brighter future for the nation.
Key announcements for the industry include the launch of the ‘Mission for Cotton Productivity,’ a 5-year initiative aimed at improving cotton farming sustainability and productivity. This mission will support farmers with advanced science and technology and promote extra-long staple cotton varieties, ensuring a steady supply for India's traditional textile sector.
In support of MSMEs, the government has revised the classification criteria, increasing investment limits from Rs1 crore to Rs2.5 crore and turnover limits from Rs 5 crore to Rs10 crore, helping these enterprises achieve higher efficiencies and better access to capital. This change will empower MSMEs to grow, innovate, and generate employment opportunities for the youth.
The budget also introduces enhancements in credit availability, particularly for Micro and Small Enterprises (MSEs) and Startups. The credit guarantee cover will increase from Rs 5 crore to Rs10 crore for MSEs, leading to an additional credit flow of Rs1.5 lakh crore over the next 5 years. For Startups, the guarantee cover will rise from Rs10 crore to Rs20 crore, with the guarantee fee moderated to 1 per cent for loans in 27 focus sectors.
Additionally, five National Centres of Excellence for skilling will be established to equip the youth with skills for global manufacturing, boosting India’s potential as a key player in global trade.
For international trade, the government plans to set up an Export Promotion Mission and a unified digital platform, ‘BharatTradeNet,’ to streamline export documentation and financing solutions, boosting the growth of India’s exports.
The budget also includes significant tax relief for middle-class citizens, with no income tax payable up to an income of Rs12 lakh, which will support increased consumption, savings, and investment.
This Union Budget marks a strong commitment to inclusive growth, ensuring that farmers, MSMEs, and the broader manufacturing sector benefit from transformative reforms.
