Industry representatives have urged the government to use the upcoming Union Budget to futureproof India’s textile and apparel sector through a series of measures aimed at strengthening resilience, fostering innovation and enhancing global competitiveness. The sector is facing mounting pressure from global trade disruptions and rising cost challenges. The request has been made by the Confederation of Indian Textile Industry (CITI).
On raw material availability and price stability, the industry body has sought the removal of import duties on all varieties of cotton fibre, changes to the minimum support price (MSP) formula for cotton to better align with international benchmark prices, and the creation of a Cotton Price Stabilisation Fund. It has also emphasised the need to ensure the availability of man-made fibres at globally competitive prices.
To improve competitiveness, technology adoption and sustainability, CITI has proposed the launch of a Green Technology Scheme to help micro, small and medium enterprises transition to clean energy and sustainable practices. It has also called for an alternative to the erstwhile Technology Upgradation Fund Scheme, a dedicated scheme to promote indigenous textile machinery manufacturing, measures to address high power costs and industrial cross-subsidies, and the establishment of a National Textile Fund.
In the area of trade facilitation, the industry body has recommended extending the Reserve Bank of India’s trade relief measures across the entire textile value chain. Other proposals include increasing basic customs duty on knitted fabrics to curb imports at unviable prices, reintroducing the Merchandise Exports from India Scheme, and extending duty-free import facilities for specified goods to exporters of made-ups.
CITI chairman Ashwin Chandran said these measures, taken together, could significantly strengthen the resilience of India’s textile and apparel sector and help it emerge as a more formidable global player, while supporting the national objective of building a US $ 350 billion textile and apparel industry by 2030.
The demands come against the backdrop of a 50% tariff imposed by the United States on Indian goods, effective from 27th August 2025, which has had a severe impact on the textile and apparel sector. The US remains India’s single-largest export market for textile and apparel products, accounting for nearly 28% of exporters’ total revenues. Exports to the US were valued at close to US $ 11 billion in the 2024–25 financial year.
Chandran noted that while Indian exporters have intensified efforts to diversify markets, it remains difficult to quickly offset potential business losses in the US. He added that although existing and forthcoming free trade agreements are expected to open up new opportunities for the sector, the benefits of such agreements would take time to materialise.
