Union Budget 2025-26: ?5,272 Crore Boost for Textiles, New Cotton Mission Launched

The Union Budget 2025-26 has increased the Ministry of Textiles’ budget by 19% to ?5,272 crore, introducing key policy measures to modernize the industry, support MSMEs, and enhance global competitiveness.

Key Announcements:

• Five-Year Cotton Mission: Focused on increasing cotton productivity, particularly Extra Long Staple (ELS) cotton, through science-driven solutions to boost yields and reduce import dependence.
• Duty Exemptions for Shuttle-Less Looms: 7.5% import duty removed on Rapier and Air Jet Looms to encourage modernization in weaving, supporting Make in India efforts in agro-textiles, medical textiles, and geo-textiles.
• Custom Duty Revisions on Knitted Fabrics: The Basic Custom Duty has been raised to 20%, or ?115 per kg, to curb cheap imports and protect domestic manufacturers.
• Boost for Handicraft Exports: The export conversion period was extended to one year, with nine new items added to the duty-free input list, benefiting handicraft exporters.
• MSME & Export Promotion: Several initiatives introduced, including:?

National Manufacturing & Export Promotion Missions

1. Bharat Trade Net for seamless exports
2. Fund of Funds to support MSMEs
3. Labour-intensive sector reforms

These measures aim to modernize production, strengthen MSMEs, and reduce import dependence, positioning India’s textile sector for sustained growth and global competitiveness. For more information, visit: https://www.parekhgroup.co.in/