ICRA: Textile Sector Seeks Tariff Resolution, MSME Support In Union Budget FY27
ICRA has highlighted key expectations from India’s textile industry ahead of the Union Budget FY2027, noting that the sector continues to face pressure from international tariff issues, intensified regional competition and a subdued export environment.
According to Srikumar Krishnamurthy, Senior Vice President & Co-Group Head, Corporate Ratings at ICRA, the year 2025 was particularly challenging for domestic textiles, with U.S. tariff actions affecting the entire value chain, especially apparel and home textiles. Early resolution of ongoing tariff negotiations is considered critical as global retailers prepare to place orders for upcoming seasons.
With several neighbouring countries gaining competitive advantage, the industry is seeking temporary assistance and policy safeguards to protect exporters. Key expectations include favourable financing terms, support for MSMEs, job security measures and targeted schemes for skill development and supply chain stabilization.
Industry stakeholders believe that timely and targeted policy interventions in the Budget could help restore momentum in export markets while reinforcing India’s competitiveness in key segments such as apparel, home textiles and value-added fabrics.
