The Clothing Manufacturers Association of India (CMAI) has welcomed the Union Budget 2025-26, noting its potential to positively impact the textile industry. While no specific schemes have been introduced for the sector, CMAI President Santosh Katariya highlighted several key benefits that could support both production and consumption growth.

On the production side, measures aimed at MSMEs, particularly the Micro sector, are expected to provide a significant boost. Although detailed guidelines are awaited, the increase in various upper limits is a promising step. The launch of the Cotton Mission marks a major milestone for the industry, while initiatives to enhance export competitiveness, strengthen domestic manufacturing capacities, and improve ease of doing business are expected to drive growth. Additionally, the lowering of Basic Customs Duty on certain textile machinery will provide further impetus to the sector.

On the consumption front, the lowering of income tax across various levels is likely to increase disposable income, leading to greater consumer spending. Furthermore, revised TDS and TCS limits are expected to stimulate consumption, benefitting the textile and apparel industry.

Overall, CMAI views the Budget as a positive step for the industry, provided that its benefits are not counteracted by a rise in GST rates, particularly in the textile and apparel sector.

With a strong focus on manufacturing and consumption, the Budget 2025-26 sets a promising direction for the future of India’s textile industry.