The textile industry, which is hit by the US tariffs, has largely welcomed the announcements for the sector in the Budget though it is disappointed that the Customs Duty on cotton continues.
India’s tariff-impacted textile sector and its entire value chain have received support from an array of schemes announced in Union Budget 2026. This, complemented by free trade agreements, will expand market access for domestic textile makers, said Gautam Shahi, Director, Crisil Ratings.
Vijay Agarwal, chairman of the Cotton Textiles Export Promotion Council, said the Integrated Textile Initiative aims to protect and strengthen the traditional textile producing clusters along with focus on new fibres. Permitting sales from Special Economic Zones to Domestic Tariff Areas at concessional tariff, proposed simplification of custom clearance procedures and removal of value cap of ₹10 lakh per consignment on courier exports are welcome measures.
A. Sakthivel, chairman of the Apparel Export Promotion Council, said the Budget provides a roadmap for strengthening India’s textile and apparel ecosystem, with a strong focus on self-reliance, sustainability, employment generation and global competitiveness.
Chairman of the Confederation of Indian Textile Industry Ashwin Chandran pointed out that the focus on logistics sector and plans to constitute a High-Level Committee on Banking will also support the textile sector.
According to Southern India Mills Association chairman Durai Palanisamy, the Capital Support Scheme for Modernisation will enable the industry to upgrade the technology. The government should remove the 11% import duty on all varieties of cotton and enable the industry to achieve the vision set by the government.
Tiruppur Exporters’ Association president K.M. Subramanian said the package balances supply side reforms, farm to factory linkages, and export demands.
R.K. Vij, president of the Textile Association India, said the budget has focused on capacity building and technical textiles. It should have addressed the Customs Duty on cotton, MMF and other fibres.
According to Sanjay K. Jain, Indian Chamber of Commerce National Textile Committee Chair, said the announcements related to textiles will help the industry capitalise on the opportunities that will come with the FTAs.
Prabhu Dhamodharan, convenor of the Indian Texpreneurs Federation, said raw material security and competitive pricing are key for competitiveness of textiles and the budget strives to provide these.
According to Shaleen Toshniwal, chairman of Manmade and Technical Textiles Export Promotion Council, the scheme will certainly address the requirements of fibres by the textile and clothing sector to achieve the export target of $ 100 billion by 2030.
The Openend Spinning Mills Association president, G. Arulmozhi, said increasing container production in the country and thrust on technical textiles are welcome measures.
The Union Budget 2026 includes several positive measures to boost the textile sector, said M. Jayapal, chairman of Recycled Textile Federation.
According to the South India Spinners Association while the budget announcements are welcome measures, the cost pressure faced by the textile mills need continuous policy support.
Published – February 01, 2026 09:44 pm IST
