New Delhi: The Confederation of Indian Textile Industries (CITI) has welcomed the Union Budget presented by Finance Minister Nirmala Sitharaman for the financial year 2027 (FY27), saying that it will prove to be important for increasing the global competitiveness of the textile and apparel sector, promoting exports and protecting employment. The organization said the budget is a testament to the government's commitment to making the region more resilient to global challenges and economic instabilities.
Commenting on the Budget, CITI Chairman Ashwin Chandran said the measures announced will future-proof the textile and apparel industry as well as strengthen its contribution to the Grow India mission. He expressed his gratitude to the Prime Minister, Finance Minister and Textiles Ministry and said that these initiatives will take the industry forward towards innovation, sustainable production and more employment generation.
Several important announcements have been made in the Budget, including National Fiber Mission, Mahatma Gandhi Gram Swaraj Initiative, Tex-Eco Initiative, Mega Textile Park in challenge mode, Modernization of Traditional Clusters, Textile Expansion and Employment Programme, National Handloom and Handicraft Programme, and Samarth 2.0 Skill Development Scheme. Chandran said these initiatives will help local manufacturers become more efficient, innovative and sustainable and increase India's presence in global markets.
However, he also said that there was no direct announcement of removal of import duty on cotton-based products to increase cost competitiveness. This is important as these products account for about 60 percent of India's total textile and apparel market. Along with this, Chandran also stressed the need for a dedicated scheme to provide direct investment support to MSMEs to adopt sustainable production models, which will also help in availing the benefits of the upcoming India-EU Free Trade Agreement (FTA).
CITI also welcomed the proposals of increasing the export realization period for exporters from six months to one year, logistics reforms through freight corridors, simplification of export-import processes and formation of a high-level committee on banking for a developed India. Chandran said the organization will continue to work closely with the government to achieve the $350 billion textile and apparel industry and $100 billion export target by 2030.
The textile and apparel industry is the second largest generator of employment and livelihood in the country and contributes significantly to the GDP and total exports of the country. The US 50 per cent tariff, effective from August 27, 2025, has adversely impacted the sector, as the US is India's largest textile export market. India's textile and apparel exports to the US stood at about $11 billion in fiscal year 2024-25, which was about 28 percent of the total exports of the sector.
