Union Budget 2025-26: Textiles Ministry Budget increased by 19%
On February 1, 2025, Union Finance Minister Nirmala Sitharaman unveiled the Union Budget for the fiscal year 2025-26. The Budget allocated Rs 5272 crore to the Ministry of Textiles for 2025-26, representing a 19 percent increase from the previous year's budget estimate of Rs 4417.03 crore.
To address the problem of stagnant cotton productivity, the Union Budget for 2025-26 has launched a five-year Cotton Mission focused on increasing cotton yield, especially for extra-long staple varieties. This initiative will provide scientific and technological support to farmers.
To promote the domestic production of technical textile products such as agri-textiles, medical textiles, and geotextiles at competitive prices, two more types of shuttle-less looms have been added to the list of fully exempted textile machinery.
The duty on shuttle-less looms, including Rapier looms (under 650 meters per minute) and air jet looms (under 1000 meters per minute), used in the textile industry has been lowered to zero from the previous 7.5 percent.
The basic customs duty rate on knitted fabrics under nine tariff lines has been raised from '10 percent or 20 percent' to '20 percent or Rs 115 per kg, whichever is higher'. This initiative seeks to enhance the competitiveness of Indian knitted fabric producers and decrease the flow of inexpensive imports.
Micro, Small, and Medium Enterprises (MSMEs) constitute 80 percent of India's textile industry. Emphasis on exports, enhanced credit, and budgetary support will bolster textile MSMEs. The National Manufacturing Mission, Export Promotion Mission, establishment of the Fund of Funds for India Trade Net, initiatives for labor-intensive sectors to enhance employment and entrepreneurship, revised classification criteria for MSMEs, and other declarations will foster a supportive atmosphere for the textile industry.