Industry Updates

Budget Highlights by Sanjay K Jain, ICC Textiles Chairman

Published: February 1, 2025
Author: Fashion Value Chain

Overall Impact: Positive

1) Budget Allocation steeply up from FY 24-25 revised figures of Rs 3342 crores to Rs 5252 crores (mainly increased for ATUF & PLI which means incentive funds with flow to industry faster)
2) Cotton Mission of 5 years announced to boost productivity & production – today India has no surplus in cotton and has one of the lowest yileds of 450kgs/hectare against global average of 800kgs plus – big boost to cotton based industry
3) Flat 20% or Rs 115/kg import duty, whichever is higher, imposed on all knitted fabric HS codes – means no scope for leakages and any fabric below Rs 575/kg would attract import duty of Rs 115/kg – will stop undervalued fabrics into the country – PLUS for the local MMF based industry
4) Shuttleless looms added to import duty exemption list of Technical Textiles Machinery
5) Consumption driven budget with higher money in hands of middle class means more buying of apparels and home textiles
6) Textiles is pre dominantly in MSME segment with many women entreprenuers – all schemes for their benefits would directly impact textile manufacturing

Sanjay K Jain
Chairman ICC National Textiles Committee
MD, TT Limited

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