India’s Textile Industry Secures Boost with Increased Budget Allocation

ENA Sectors 2025-02-05 14:56:56 New Delhi, Feb 5 (KNN) Indias textile exports are unlikely to be impacted by any potential increase in tariffs by the United States, as the country has been competing in the sector on the strength of its own products, Textiles Secretary Neelam Shami Rao told DH. India has been competing on its own merits and the quality of its products. We are not among those nations that benefit from being classified as least developed countries (LDCs), Rao remarked, referencing the preferential trade access that Bangladesh and other LDCs enjoy. Preferential treatment, such as duty-free access and relaxed rules of origin norms in key markets like the European Union and the United Kingdom, provides Bangladesh a competitive edge in the textiles sector. However, Rao emphasised that Indias position remains stable. India is among the top six textile exporting countries. I dont foresee any instability in our position, she stated confidently. According to official data, India accounted for 3.9 per cent of the global textile and apparel trade in 2023-24. Nearly half of Indias textile and apparel shipments are destined for the U.S. and EU markets, highlighting the countrys significant footprint in these regions. Rao highlighted that increased budget allocations and tariff-related measures announced in the Union Budget 2025-26 would further enhance the sectors competitiveness. There is normally an 8-10 per cent increase, but this year we have received an approximately 20 per cent increase. We have been directed to spend more and propel the industry forward, she noted. The Union Budget has raised the allocation for the Ministry of Textiles to Rs 5,272 crore for 2025-26, reflecting a 19 per cent year-on-year rise. Rao believes these measures will improve cotton industry quality, productivity, and innovation. With around 80 per cent of the Indian textile industry being part of the MSME sector, Rao emphasised that broader policies for MSMEs and exports would directly benefit textiles. On the production-linked incentive (PLI) scheme, she affirmed that the focus remains on achieving the targets of the first phase before considering an expansion. Once we deliver on PLI 1.0, we can certainly explore the next phase, she concluded. (KNN Bureau) 40952 https://knnindia.co.in/news/newsdetails/sectors/indias-textile-industry-secures-boost-with-increased-budget-allocation 2025-02-05 14:56:56 knnindia.co.in India’s Textile Industry Secures Boost with Increased Budget Allocation