FY27 Budget to Strengthen Textile Exports, Says CITI

FY27 Budget to Boost Textile Exports, Improve Global Competitiveness: CITI

New Delhi: The Confederation of Indian Textile Industries (CITI) has welcomed the Union Budget for FY27, stating that it will play a crucial role in enhancing the global competitiveness of India’s textile and apparel sector, boosting exports, and safeguarding employment.

CITI said the Budget reflects the government’s commitment to strengthening the sector against global uncertainties and economic challenges.

Commenting on the Budget, CITI Chairman Ashwin Chandran said the measures announced will help “future-proof” the textile and apparel industry and strengthen its contribution to the Grow India mission. He expressed gratitude to the Prime Minister, Finance Minister, and the Ministry of Textiles, noting that the initiatives will drive innovation, sustainable production, and employment generation.

The Budget includes several key initiatives such as the National Fibre Mission, Mahatma Gandhi Gram Swaraj Initiative, Tex-Eco Initiative, Mega Textile Parks under a challenge mode, Modernisation of Traditional Clusters, Textile Expansion and Employment Programme, National Handloom and Handicraft Programme, and Samarth 2.0 Skill Development Scheme. According to Chandran, these programmes will improve efficiency, encourage innovation, and promote sustainability across the sector, thereby strengthening India’s position in global markets.

However, he noted that the Budget did not announce any direct reduction in import duties on cotton-based products, which remains important for improving cost competitiveness. These products account for nearly 60% of India’s textile and apparel market. He also highlighted the need for a dedicated scheme to support MSMEs in adopting sustainable production practices, which would help India benefit from the upcoming India–EU Free Trade Agreement (FTA).

CITI also welcomed measures such as extending the export realisation period from six months to one year, logistics reforms through freight corridors, simplification of export-import procedures, and the formation of a high-level banking committee aimed at supporting a developed India.

Chandran said the industry body will continue working closely with the government to achieve a $350 billion textile and apparel industry size and a $100 billion export target by 2030.

The textile and apparel sector remains India’s second-largest employment generator and contributes significantly to GDP and overall exports. However, the industry has been impacted by a 50% US tariff effective from August 27, 2025, as the United States is India’s largest textile export market. India’s textile and apparel exports to the US stood at around $11 billion in FY2024–25, accounting for nearly 28% of total sector exports.

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