New Delhi: The Union Budget on Saturday announced a 19 per cent increase in the Budget Estimates for the Ministry of Textiles for 2025-26 at Rs 5,272 crore over budget estimates of Rs 4,417.03 crore in 2024-25.
According to the Ministry of Textiles, to address the challenges of stagnant cotton productivity, the Union Budget has announced a five-year Cotton Mission to increase cotton productivity, especially extra-long staple varieties.
“Science and technology support will be provided to farmers under this Mission. The Mission will increase the income of the farmers and augment a steady supply of quality cotton,” the Ministry said.
By boosting domestic productivity, this initiative will stabilise raw material availability, reduce import dependence and enhance the global competitiveness of India’s textile sector, where 80 per cent of capacity is driven by MSMEs.
To promote domestic production of technical textile products such as agro-textiles, medical textiles, and geotextiles at competitive prices, two more types of shuttle-less looms were added to the list of fully exempted textile machinery.
Duty on Shuttle-less loom Rapier Looms (below 650 metres per minute) and Shuttle-less loom Air jet Looms (below 1000 metres per minute) for use in the textile industry has been made nil from the existing 7.5 per cent.
This provision will reduce the cost of high-quality imported looms, thus facilitating modernisation and capacity enhancement initiatives in the weaving sector. This will also will boost “Make in India” in the technical textile sector viz. agro textiles, medical textiles, and geo-textiles, the Ministry added.
The basic Customs Duty rate on knitted fabrics covered by nine tariff lines was reduced from “10 per cent or 20 per cent” to “20 per cent or Rs 115 per kg, whichever is higher”.
This will improve the competitiveness of Indian knitted fabric manufacturers and curb cheap imports.
To facilitate exports of handicrafts, the period for export was extended from six months to one year, further extendable by another three months, if required.
India is the sixth-largest exporter of textiles and apparel and exported textile items worth $34 billion in 2023. More than 45 million people are employed directly.
(IANS)
