The textile and apparel industry has welcomed the Union Budget 2026–27 and the comprehensive measures announced for India’s textile value chain, describing it as a package that signals a clear, outcomes-oriented intent to modernise the sector, strengthen livelihoods across the value chain, and accelerate India’s competitiveness in both domestic and global markets.

Sharing his views on the Budget, Santosh Katariya, President, Clothing Manufacturers Association of India (CMAI), said, “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.”

He noted that the key initiatives announced address the textile economy from 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 will raise yields, promote extra-long staple varieties, and deliver science and technology support to farmers, improving farm incomes and ensuring steadier, higher-quality cotton for industry use,” Katariya added.

Commenting on the revival and inclusion of traditional textile segments, Katariya said 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 expansion to modernise traditional textile clusters and the focus on employment generation will directly benefit cluster economies and sustain millions of livelihoods,” he stated.

Welcoming the Government’s emphasis on skilling and modernisation, Katariya said, “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. Along with National Centres of Excellence and other skilling initiatives, these measures will help address labour market needs and support the transition toward higher-value production.”

On sustainability and infrastructure development, he remarked, “The Textile Eco Initiative aims to build world-class, environmentally sustainable textiles and garments. Alongside this, the 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.”

Katariya also highlighted the importance of the trade and customs measures announced in the Budget. “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 further support value addition and export competitiveness,” he said.

Referring to broader economic reforms, he added, “Enhanced credit availability and guarantee covers for MSMEs, tailored credit cards for first-time entrepreneurs, the Export Promotion Mission, BharatTradeNet, and the National Manufacturing Mission will significantly strengthen the business environment for textile and apparel manufacturers.”

According to Katariya, the Budget is focused on building long-term structural strength rather than immediate consumption-driven growth. “The emphasis on fibre security, capacity building, skilling, and sustainability lays a foundation for durable growth, with demand-side momentum expected to build progressively. However, the current allocation of Rs. 1,500 crore for the Integrated Textile Programme for FY26–27 will need to be enhanced in the coming years to bring about meaningful change in the sector,” he pointed out.

Summing up the industry’s perspective, Katariya said, “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.”