The textile industry, which has been hit by US tariffs, has largely welcomed the industry announcement in the budget, although it is disappointed that the cotton tariff is continuing.
India’s tariff-impacted textile sector and its entire value chain have received a boost from a number of programs announced in the Union Budget 2026. This, coupled with free trade agreements, will expand market access for domestic textile manufacturers, said Gautam Shahi, director, Crisil Ratings.
Vijay Agarwal, chairman, Cotton Textiles Export Promotion Council, said the Integrated Textile Initiative aims to protect and strengthen traditional textile manufacturing clusters along with focus on new fibers. Allowing sales from special economic zones to national customs areas at concessional rates, proposed simplification of customs clearance procedures and removal of value limit of ₹10,000 per consignment for courier exports are welcome measures.
A. Sakthivel, Chairman, Apparel Export Promotion Council, said the budget provides a blueprint for strengthening India’s textile and apparel ecosystem with a strong focus on self-sufficiency, sustainability, job creation and global competitiveness.
Confederation of Indian Textile Industry Chairman Ashwin Chandran pointed out that the focus on the logistics sector and plans to set up a High Level Banking Committee will also boost the textile sector.
According to Southern India Mills Association chairman Durai Palanisamy, the capital support scheme for modernization will enable the industry to upgrade technology. The government should remove the 11% import duty on all varieties of cotton and allow the industry to achieve the vision set by the government.
Tiruppur Exporters’ Association president KM Subramanian said the package balances supply-side reforms, farm-to-factory linkages and export requirements.
RK Vij, president of Textile Association India, said the budget focused on capacity building and technical textiles. It was supposed to deal with the duty on cotton, MMF and other fibers.
According to Sanjay K. Jain, chairman of the Indian Chamber of Commerce’s National Committee on Textiles, he said the textile announcements will help the industry take advantage of the opportunities that the FTAs will bring.
Prabhu Dhamodharan, convenor of Indian Federation of Texpreneurs, said that security of raw materials and competitive prices are key for textile competitiveness and the budget is trying to ensure them.
According to Shaleen Toshniwal, Chairman, Export Promotion Council, Manmade and Technical Textiles, this scheme will definitely address the fiber requirements of the textile and apparel sector to meet the export target of $100 billion by 2030.
Open Spinning Mills Association President G. Arulmozhi said the country’s increase in container production and emphasis on technical textiles are welcome measures.
The Union Budget 2026 contains several positive measures to support the textile sector, said M. Jayapal, Chairman, Recycled Textile Federation.
According to the South India Spinners Association, while the budget announcements are welcome measures, the cost pressure faced by textile mills needs sustained political support.
Published – 01 Feb 2026 21:44 IST
