Govt increases textile budget by 19%, launches cotton productivity mission
By yash chouhan 2025-02-08 12:15:14
The government starts a cotton production mission and boosts the textile budget by 19%.
The Indian textiles and apparel industry, worth around $176 billion, plays a vital role in the country's economy, contributing nearly 2% to the gross domestic product (GDP) and accounting for about 11% of manufacturing output. With over 45 million workers directly employed, the sector continues to be one of the largest sources of employment in the country. India is also the sixth largest global exporter of textiles and apparel, holding around 4% market share in the sector.
The Union Budget 2025-26 has allocated Rs 5,272 crore to the Ministry of Textiles, marking a 19% increase from the previous year's budget of Rs 4,417.03 crore. This is the highest allocation in recent years, reflecting the government's commitment to strengthen the sector. The production-linked incentive (PLI) scheme for textiles has also seen a significant increase in its budget, rising from Rs 1,000 crore in 2018-19 to Rs 1,000 crore in 2019-20 and from Rs 45 crore in 2024-25 to Rs 1,148 crore this year. The PLI scheme, with a total outlay of Rs 10,683 crore over five years, aims to enhance India's manufacturing capabilities and exports, especially in the man-made fibre (MMF) and technical textiles sector.
A new 'Cotton Productivity Mission' has been announced as a five-year initiative to improve the yield and sustainability of cotton cultivation. The programme will be jointly implemented by the Ministry of Agriculture and Family Welfare and the Ministry of Textiles, with a special focus on promoting extra long staple cotton varieties.
To curb the influx of low-cost textile imports, the Budget has increased the basic customs duty (BCD) on knitted fabrics falling under nine tariff lines from "10% or 20%" to "20% or Rs 115 per kg, whichever is higher". The move is aimed at supporting domestic textile manufacturers, boosting local production and encouraging investments in textile manufacturing.
In a major industry move, India Tex 2025, one of the world's largest textile expos, will be held from February 14-17, 2025 at Bharat Mandapam, New Delhi. Organised by 11 leading textile industry bodies and supported by the Ministry of Textiles, the event will bring together all stakeholders of the textile value chain. Parallel exhibitions on apparel machinery, dyes and chemicals and handicrafts will be held on February 12-15 at the India Expo Centre in Greater Noida. The event will focus on sustainability, innovation and strengthening global value chains.
