Indian apparel & textile industry with a size of about US $ 176 billion, contributes close to 2 per cent to the country’s Gross Domestic Product and accounts for about 11 per cent of the manufacturing output. The textile industry is also one of the largest sources of employment generation in the country directly employing over 45 million textile workers. India is the sixth largest exporter of textiles and apparels and has a share of about 4 percent of the global trade in this segment. The share of textile and apparel (T&A) including handicrafts in India’s total merchandise exports is currently about 8 percent. The sector has perfect alignment with Government’s key initiatives like Make in India, Skill India, Women Empowerment and Rural Youth Employment.
The Budget announced an outlay of Rs. 5,272 crores for the Ministry of Textiles for 2025-26. This was an increase of about 19 percent over budget estimates of 2024-25 (Rs. 4417.03 crore), and is the highest in recent years. Budget for the Production Linked Investment Scheme for Textiles has been enhanced from Rs.45 crore (BE) in 2024-25 to Rs.1148 crore this year. Production-Linked Incentive (PLI) Scheme for textiles is being implemented to enhance India’s manufacturing capabilities and enhancing exports with an approved financial outlay of Rs 10,683 crore over a five year period. It covers sunrise sectors like the Manmade made Fibre (MMF), MMF apparel and Technical textiles segment, to enable these sectors to achieve size and scale, to become globally competitive.
Union Budget 2025-26 has announced a ‘Mission for Cotton Productivity’. This 5-year mission will facilitate significant improvements in productivity and sustainability of cotton farming, and promote extra-long staple cotton varieties. This mission would be jointly implemented by Ministry of Agriculture & Family Welfare (MoA & FW) and Ministry of Textiles.
National Technical Textiles Mission of Ministry of Textiles focuses on (i) research, innovation and development, (ii) promotion and market development (iii) education and skilling and (iv) export promotion in technical textiles. The Budget has added two more types of shuttle-less looms to the list of fully exempted textile machinery. Duty on Shuttle less loom Rapier Looms (below 650 meters per minute) and Shuttle less loom Air jet Looms (below 1000 meters per minute) for use in textile industry has been made nil from the existing 7.5%.
Budget announcement to increase Basic Custom Duty rate on knitted fabrics covered by nine tariff lines from “10% or 20%” to “20% or Rs.115 per kg, whichever is higher” will fortify the domestic textile industry by curbing the influx of low-priced imports of knitted fabrics. This measure will encourage the use of domestically produced fabrics, boost capacity utilization, and stimulate investments in local manufacturing.
The budget has identified MSMEs as one of the engines, for bringing about transformative reforms in the economy. This gains importance for the textile sector, given that majority of India’s textile and apparel production capacity is represented by MSMEs, which account for over 80% of the sector. Provisions like revision in classification criteria for the MSMEs with significant enhancement of credit availability with guarantee cover would help them achieve higher efficiencies of scale, technological upgradation and better access to capital. With the revised classification, now more units will come under MSME.
To further the above agenda, and to give a fillip to the Indian textile industry, a mega event – Bharat Tex 2025, is being organized by 11 major textile industry bodies and supported by the Ministry of Textiles. Bharat Tex 2025 would be one of the largest of events of its kind in the world both in scale and scope, as it brings the entire textile industry value chain, from raw materials to finished products and including accessories under one single roof. Built around the twin themes of resilient global value chains and textile sustainability –the event focuses on sustainability, innovation, and global collaboration. The main event will be held from February 14-17, 2025 at the Bharat Mandapam and will cover the entire value chain of textiles from raw materials to finished products, while related exhibitions such as accessories, garment machinery, dyes and chemicals and handicrafts, will be held from February 12 to 15, 2025 at the India Expo Centre and Mart Greater Noida. With the enabling policy support in place, efforts would be needed to further energize to make India Atmanirbhar in the entire raw material value chain, tap more investments, augment its domestic market size and exports, and maintain and enhance its potential for ensuring large-scale livelihood opportunities.
(The Author is Minister For Textiles, Govt of India. Courtesy: PIB)
