The Union Budget 2024-25 has set the stage for a significant boost to the textile sector. With increased allocations, targeted incentives, and protective measures, the industry is poised for faster growth and enhanced competitiveness. Here&rsquo;s a breakdown of the key highlights:
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Budget Allocation:
The budget allocation for the sector has jumped significantly from the revised FY 2024-25 figures of ₹3,342 crore to ₹5,252 crore, primarily for schemes like the Amended Technology Upgradation Fund (ATUF) and Production Linked Incentive (PLI). This ensures that incentive funds will flow faster to the industry, accelerating growth and investment.
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Cotton Mission:
A five-year Cotton Mission has been announced to boost productivity and production. Currently, India has one of the lowest cotton yields at 450 kg per hectare compared to the global average of over 800 kg, leaving no surplus for the domestic industry. This mission could be a game-changer for cotton-based manufacturing, improving supply chains and stabilizing costs.
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Import Duty on Knitted Fabric:&nbsp;
A flat 20% or ₹115/kg import duty&mdash;whichever is higher&mdash;has been imposed on all knitted fabric HS codes. This effectively closes loopholes for undervalued fabric imports, ensuring that any fabric below ₹575/kg attracts the ₹115/kg duty. The move is a big win for the local man-made fibre (MMF) industry, shielding it from unfair competition.
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Technical Textiles Machinery:&nbsp;
Shuttleless looms have been added to the import duty exemption list for technical textiles machinery, encouraging modernization in the sector.
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Consumption-Driven Budget:&nbsp;
With more money in the hands of the middle class, demand for apparel and home textiles is expected to rise.&nbsp;
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Support for MSMEs and Women Entrepreneurs:&nbsp;
Given that the textile sector is predominantly composed of MSMEs, many led by women entrepreneurs, all schemes benefiting this segment will directly impact textile manufacturing, job creation, and economic empowerment.
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By laying the groundwork for faster incentives, better cotton productivity, and a fairer competitive landscape, the budget sends a strong message: India&rsquo;s textile industry is poised for growth. Now, the focus must be on effective implementation to turn these provisions into tangible gains.
Ashish Gujarati is the Past President, SGCCI &amp; President, Pandesara Weavers Co-operative Society Ltd

The budget allocation for the sector has risen from ₹3,342 crore to ₹5,252 crore

Increased incentives, Cotton Mission, and import duty changes set to benefit textile sector

A Stronger Weave: Budget Boost for Textile Sector

Increased incentives, Cotton Mission, and import duty changes set to benefit textile sector

February 1, 2025 | 16:30 IST