We welcome the Finance Minister’s Budget 2026-27 and the comprehensive measures announced for India’s textile value chain. The package signals a clear, outcomes-oriented intent to modernise the sector, strengthen livelihoods across the value chain, and accelerate India’s competitiveness in domestic and global markets.
The key initiatives announced address the textile economy end to end. The National Fibre Mission, focused on self-reliance in natural fibres as well as man-made and special-use fibres, is an important step toward securing reliable raw material supplies and reducing import dependency. Complementing this, the Mission for Cotton Productivity aims to raise yields, promote extra-long staple varieties, and deliver science and technology support to farmers, which will improve farm incomes and provide steadier, higher-quality cotton for industry use.
On revival and inclusion of traditional textile segments the Budget is notably positive. The Mahatma Gandhi Gram Swaraj Initiative will promote khadi, handloom and handicrafts at scale, while the proposed National Handloom and Handicrafts Programme will integrate and scale existing schemes to improve market access and value addition for artisans and small producers. The announced expansion to modernise traditional textile clusters and the focus on employment generation will directly benefit cluster economies and sustain millions of livelihoods.
The Government’s emphasis on skilling and modernisation is welcome. Samarth 2.0 and the broader skilling ecosystem commitments will equip workers with contemporary manufacturing and design skills, enabling productivity gains and faster adoption of Industry 4.0 technologies. These measures, together with the National Centres of Excellence and other skilling initiatives in the Budget, will help address both labour market needs and the transition toward higher value production.
Sustainability and global standards receive necessary attention through the Textile Eco Initiative, which aims to build world-class, environmentally sustainable textiles and garments. This, along with the planned establishment of new Mega Textile Parks in mission mode, will attract investment, improve compliance and traceability, and create integrated hubs for scale, quality control and exports.
Trade and customs measures announced in the speech are practical and targeted. The exemption of specified shuttle-less looms and other textile machinery from basic customs duty will lower capex barriers for modernisation. Adjustments to tariff lines for knitted fabrics and duty concessions for inputs used by exporters will support value addition and export competitiveness.
Beyond sector-specific measures, several cross-cutting reforms announced in the Budget will benefit textiles: enhanced credit availability and guarantee covers for MSMEs, tailored credit cards and support for first-time entrepreneurs, an Export Promotion Mission and BharatTradeNet to streamline trade documentation and finance, and the National Manufacturing Mission to further Make in India objectives.
The Budget appears oriented towards strengthening long-term supply-side and structural interventions across the textile value chain, rather than catalysing an immediate spurt in consumption or near-term demand. The emphasis on fibre security, capacity building, skilling, and sustainability lays a foundation for durable growth, with demand-side momentum expected to build progressively.
We feel that the current budget allocation of Rs. 1,500 Crores for Integrated Textile Programme for FY26-27 will have to be enhanced further in the coming years in order to make meaningful changes in the sector.
Overall, we assess the announcements as constructive and positive for the textile ecosystem. The package balances supply-side reforms, farm-to-factory linkages, skills, sustainability and export orientation.
We look forward to rapid and transparent implementation and stand ready to partner with the Government to operationalise these measures, align them with cluster needs, and ensure benefits flow to farmers, artisans, workers and textile businesses across the country.
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