India’s Textile Ministry Budget Likely to Rise by 15% Amid Sector Reforms

As India prepares for the upcoming Union Budget, expectations are high for key reforms in various industries, including textiles. Finance Minister Nirmala Sitharaman is likely to focus on boosting the textile and garment sector.

The Ministry of Textiles, currently allocated Rs 44.17 billion, is expected to see an increase of up to 15% in funding. The government is also considering reducing duties on key raw materials like polyester and viscose special fibre to enhance domestic manufacturing. Another Production-Linked Incentive (PLI) scheme for textiles is under discussion to encourage local production.

In the previous Budget, customs duties were reduced on materials used in textiles and leather exports, including methylene diphenyl diisocyanate (MDI) for spandex yarn production. These measures aim to improve industry competitiveness.

Key Changes Needed for the Textile Sector

To drive long-term growth, the industry must focus on:

1. Sustainability: Eco-friendly fabrics, energy-efficient production, and waste reduction.
2. Government Support: Expanding PLI schemes, reducing raw material duties, and easing regulations.
3. Technology & Automation: AI, IoT, and 3D printing to modernize manufacturing.
4. Workforce Development: Training workers in digital design, automation, and technical textiles.
5. Export Growth: strengthening trade agreements and expanding global market access.

With the Union Budget around the corner, industry stakeholders are looking forward to policy measures that will strengthen India’s textile sector and boost global competitiveness.

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