Union Budget Must Futureproof India’s Textile & Apparel Sector: CITI
The Confederation of Indian Textile Industry (CITI) has urged the government to use the upcoming Union Budget to futureproof India’s textile and apparel sector through reforms aimed at enhancing resilience, innovation, and global competitiveness.
“We are optimistic that the forthcoming Union Budget will significantly move the needle on policy and regulatory reforms, especially given the government’s steadfast commitment to the growth and development of India’s textile and apparel sector,” CITI Chairman Ashwin Chandran said. He further added that a Budget that strengthens the textile ecosystem would have a positive ripple effect on the national goal of building a Viksit Bharat.
The textile and apparel sector is India’s second-largest source of employment and livelihood and plays a significant role in the country’s GDP and export basket. CITI has presented a set of strategic expectations from the Budget, covering raw material availability, price stability, technology upgradation, sustainability and trade facilitation. Its recommendations include removal of import duties on all varieties of cotton fibre, revision of the Minimum Support Price formula for cotton in line with global prices, the launch of a Cotton Price Stabilisation Fund and ensuring the availability of man-made fibres at globally competitive rates.
CITI has also called for a Green Technology Scheme to support MSMEs in adopting clean energy and sustainable practices, the introduction of a new technology upgradation scheme to replace the earlier TUFS, promotion of indigenous textile machinery manufacturing, addressing high power costs and industrial cross-subsidies and the establishment of a National Textile Fund.
In addition, the industry body seeks the extension of RBI’s Trade Relief Measures across the textile value chain, an increase in Basic Customs Duty on knitted fabric imports to curb unviable pricing, reintroduction of the MEIS scheme and the extension of duty-free import facilities for specified items to exporters of made-ups.
Chandran noted that such measures, taken together, could significantly enhance the resilience of the Indian textile and apparel sector and strengthen its global standing, while also supporting the national ambition of achieving a US$ 350 billion textile and apparel industry by 2030. He also highlighted the severe impact of the 50% US tariff on Indian textile and apparel products, imposed from August 27, 2025, which has adversely affected export orders and heightened risks for millions of workers in the sector.
The United States is India’s largest market for textile and apparel exports, accounting for nearly 28% of revenue, with shipments valued at about US$ 11 billion in FY 2024-25. Although exporters are diversifying their markets, Chandran pointed out that it is difficult to quickly offset losses from the US. He added that ongoing and upcoming free trade agreements may open new opportunities, but the benefits will take time to materialise.
