The Confederation of Indian Textile Industry (CITI) has welcomed the Union Budget 2025-26, highlighting a 57.7 per cent increase in textile sector allocation. A key driver is the enhanced Rs 1,148 crore funding under the Production Linked Incentive (PLI) scheme.
CITI Chairman Rakesh Mehra praised the launch of the Mission for Cotton Productivity, addressing a long-pending industry demand. The initiative aims to improve cotton farming efficiency and boost extra-long staple cotton production, reducing import dependency while enhancing sustainability.
The budget's focus on technology and competitiveness is evident in revised tariff structures for knitted fabrics, customs duty exemptions for shuttleless looms in technical textiles, and an Export Promotion Mission. These steps support the sector’s goal of reaching a $350 billion market size by 2030.
MSMEs, contributing over 45 per cent of India's exports, benefit from improved credit access. However, CITI continues to advocate for a hybrid support model combining capital subsidies with performance-based incentives.
The new tax regime is expected to boost consumer spending, driving demand for textiles. CITI also anticipates greater flexibility in import-related compliance and Quality Control Orders (QCOs), streamlining the supply chain and enhancing industry growth.
