CITI Applauds Textile Reforms In Budget 2026–27, Flags Need For MSME Investment Support

New Delhi, Feb 1 (KNN) The Confederation of Indian Textile Industry (CITI) has welcomed the Union Budget 2026–27, stating that it could provide a significant boost to the textile and apparel sector by enhancing global competitiveness, supporting exports, and protecting employment.

CITI Chairman Ashwin Chandran said, “The Budget is a strong manifestation of the government’s commitment to future-proof the textile and apparel sector, make it more resilient to global headwinds, and comes as a huge shot in the arm for the industry.”

He acknowledged measures such as the National Fibre Mission, the Mahatma Gandhi Gram Swaraj Initiative, Tex-Eco Initiative, establishment of mega textile parks in challenge mode, modernisation of traditional clusters, the National Handloom and Handicrafts Programme, and the SAMARTH 2.0 skill development scheme.

While welcoming the focus on cost competitiveness under the Budget’s guiding ‘Kartavyas’, Chandran noted, “The first Kartavya focuses on improving cost competitiveness. While we are studying the proposal, no direct announcement for the removal of import duty was made towards improving the cost competitiveness of Indian cotton-based products, which accounts for about 60 per cent of India’s total textile and apparel market.”

He welcomed the government’s focus on nurturing champion MSMEs and supporting micro enterprises, noting that the textile and apparel sector is largely MSME-driven. However, he added that the industry has long sought a dedicated investment incentive scheme to help MSMEs shift to sustainable production models and better leverage the upcoming India–EU FTA.

“While the details of the Tex-Eco initiative are awaited, the absence of a direct investment support mechanism is felt,” Chandran said.

CITI appreciated the extension of the export period for finished textile garments from six months to one year, improved focus on logistics through freight corridors, the proposal to set up a High-Level Committee on Banking for Viksit Bharat, and steps to simplify export-import procedures.

(KNN Bureau)