ENA Sectors 2026-01-20 14:33:15 <p><span style="font-size:14px"><strong>New Delhi, Jan 20 (KNN)</strong> The Confederation of Indian Textile Industry (CITI) has called on the government to strengthen Indias textile and apparel sector in the upcoming Union Budget, making it more resilient, innovative, and globally competitive.</span></p> <p><span style="font-size:14px">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 governments steadfast commitment to the growth and development of Indias textile and apparel sector. </span></p> <p><span style="font-size:14px">He added that a stronger growth ecosystem in the sector could also support Indias broader goal of a Viksit Bharat (developed India).</span></p> <p><strong><span style="font-size:14px">Export Challenges and Global Positioning</span></strong></p> <p><span style="font-size:14px">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 Indias largest export market, contributing almost 28 per cent to total textile and apparel export revenue, valued at nearly USD 11 billion in FY24-25. </span></p> <p><span style="font-size:14px">Indias 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.</span></p> <p><strong><span style="font-size:14px">Key Measures Suggested by CITI</span></strong></p> <p><span style="font-size:14px">CITI suggested a series of measures spanning raw material availability, competitiveness, and trade facilitation. </span></p> <p><span style="font-size:14px">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.</span></p> <p><span style="font-size:14px">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.</span></p> <p><span style="font-size:14px">For trade facilitation, it recommended extending RBIs 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.</span></p> <p><strong><span style="font-size:14px">CITIs Outlook</span></strong></p> <p><span style="font-size:14px">Combined, these measures could increase the resilience of Indias 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.</span></p> <p><em><strong><span style="font-size:14px">(KNN Bureau)</span></strong></em></p> 44832 https://knnindia.co.in/news/newsdetails/sectors/budget-2026-citi-calls-for-support-to-boost-resilience-global-competitiveness-of-textile-apparel-sector 2026-01-20 14:33:15 knnindia.co.in