India's Textile Sector Gets a Boost: New Cotton Mission and Increased Budgetary Allocations

The Union Budget introduces a five-year Cotton Mission to enhance cotton productivity, especially in extra-long staple varieties, boosting India's textile sector. With increased funding for the Ministry of Textiles and new support for technical textiles and MSMEs, the initiative aims to strengthen the domestic industry and reduce import reliance.

The Union Budget has launched a strategic five-year Cotton Mission, focusing on increasing productivity in extra-long staple varieties through the use of advanced Science and Technology for farmers. This initiative aims to modernize the sector, align with the '5 F principle,' and enhance the farming community's income through improved yields and global competitiveness.

This mission is poised to diminish reliance on cotton imports, stabilize raw material supply, and support the sustainable growth of India's textile industry. With MSMEs driving 80% of India's textile capacity, the rise in domestic cotton output is crucial for boosting small and medium enterprises' competitiveness. Finance Minister announced the Union Budget 2025-26 on February 1, spotlighting the textile sector as a key economic player.

The 2025-26 Budget reveals a notable increase in funding for the Ministry of Textiles, reaching Rs. 5272 crore, a 19% rise from the previous year. This allocation underscores the government's commitment to supporting the advancement of the textile sector.

The Budget introduces incentives for domestic production of technical textiles, such as agro-textiles and medical textiles, by exempting certain types of shuttle-less looms from customs duty, lowering costs for imports, and facilitating sector modernization.

Revised customs duties on knitted fabrics aim to bolster India's manufacturers by increasing competitiveness and curbing cheaper imports, further enhancing the 'Make in India' initiative.

Measures to extend export timelines and include more items in duty-free lists are designed to boost India's handicraft exports and provide flexibility to producers.

Initiatives in the Budget target MSMEs, with a focus on export growth and enhanced credit access, aided by the National Manufacturing Mission, Export Promotion Mission, and Bharat Trade Net.

Employment and entrepreneurship promotion in labor-intensive sectors, alongside revised MSME classification criteria, promise more resources and opportunities for small enterprises, paving a way forward for the textile industry's expansion. (ANI)

(With inputs from agencies.)