Budget 2026: CITI Calls For Support To Boost Resilience & Global Competitiveness Of Textile & Apparel Sector

New Delhi, Jan 20 (KNN) The Confederation of Indian Textile Industry (CITI) has called on the government to strengthen India’s textile and apparel sector in the upcoming Union Budget, making it more resilient, innovative, and globally competitive.

CITI Chairman Ashwin Chandran said, “Our optimism that the forthcoming Union Budget will significantly move the needle on policy and regulatory reforms is bolstered by the government’s steadfast commitment to the growth and development of India’s textile and apparel sector.” 

He added that a stronger growth ecosystem in the sector could also support India’s broader goal of a Viksit Bharat (developed India).

Export Challenges and Global Positioning

The sector has been hit by the 50 per cent US tariff imposed on Indian textile and apparel goods from August 27, 2025. The US is India’s largest export market, contributing almost 28 per cent to total textile and apparel export revenue, valued at nearly USD 11 billion in FY24-25. 

“India’s textile and apparel exporters have stepped up their diversification efforts, but it is tough to quickly make up for potential business losses in the US," Chandran said, adding that benefits from existing and upcoming FTAs will take time to materialise.

Key Measures Suggested by CITI

CITI suggested a series of measures spanning raw material availability, competitiveness, and trade facilitation. 

To ensure raw material and price stability, it called for the removal of import duties on all varieties of cotton fibre, revision of the cotton MSP formula in line with international benchmark prices, the launch of a Cotton Price Stabilisation Fund, and the availability of man-made fibres at globally competitive prices.

On competitiveness, technology, and sustainability, CITI proposed introducing a Green Technology Scheme to help MSMEs adopt clean energy and sustainable practices, launching a new scheme to replace the Technology Upgradation Fund Scheme, promoting indigenous textile machinery manufacturing, addressing high power costs and industrial cross-subsidies, and establishing a National Textile Fund.

For trade facilitation, it recommended extending RBI’s trade relief measures across the entire textile value chain, increasing basic customs duty on all types of knitted fabric to curb imports at unviable prices, reintroducing the Merchandise Exports from India Scheme, and extending duty-free import facilities for exporters of made-ups.

CITI’s Outlook

“Combined, these measures could increase the resilience of India’s textile and apparel sector and help it become a more powerful force globally, while also contributing towards realising the national target of creating a USD 350 billion textile and apparel industry in India by 2030,” Chandran said.

(KNN Bureau)