Budget 2026–27 Gives Major Boost To Apparel SMEs, MSMEs Through Liquidity & Export Ease: AEPC

New Delhi, Feb 1 (KNN) The Apparel Export Promotion Council (AEPC) has welcomed the Union Budget 2026–27, stating that the measures announced are aimed at strengthening the competitiveness of India’s apparel industry, particularly micro, small and medium enterprises (MSMEs).

AEPC Chairman Dr. A. Sakthivel said, “The Budget is forward-looking, growth-oriented and balanced, reflecting the Government’s strong commitment to building a competitive, resilient and globally integrated textile and apparel sector.”

He noted that the proposals provide a roadmap for improving self-reliance, sustainability, employment generation and export competitiveness.

“The Budget 2026–27 provides a significant boost to SMEs and MSMEs, which form the backbone of India’s apparel and textile exports. The emphasis on providing liquidity, ease of exports, particularly through customs-related reforms and simplified documentation procedures, will reduce transaction costs, enhance efficiency, and improve the overall ease of doing business for exporters,” Dr. Sakthivel stated.

Measures such as mandatory onboarding of Central Public Sector Enterprises on the Trade Receivables Discounting System (TReDS), enhanced credit guarantee support through the CGTMSE, linkage with the Government e-Marketplace, and the securitisation of TReDS receivables are expected to improve access to affordable finance and cash-flow stability for MSMEs.

AEPC welcomed proposals to establish mega textile parks in challenge mode, particularly for technical textiles, and the Textile Expansion and Employment Scheme aimed at modernising traditional clusters through technology upgrades and common testing facilities. The launch of Samarth 2.0 is expected to strengthen the textile skilling ecosystem and support employment, especially for youth and women.

The announcement of the National Fibre Scheme was described as a step towards strengthening domestic raw material supply across natural, man-made and new-age fibres, while the Mahatma Gandhi Gram Swaraj Initiative is expected to support khadi, handloom and handicrafts.

AEPC also welcomed the Tex-Eco Initiative to promote sustainable textiles and trade facilitation measures such as reduced cargo verification and factory-to-port clearance.

Overall, AEPC expressed confidence that the Budget measures will support export growth, strengthen domestic manufacturing and enhance India’s position in global textile and apparel markets, in line with the broader goal of Viksit Bharat.

(KNN Bureau)