The Union Budget 2026–27, presented by Smt. Nirmala Sitharaman on 1 February 2026, outlines a futuristic and growth-oriented roadmap aimed at positioning India as a global manufacturing hub and strengthening its trajectory towards becoming the world’s third largest economy. Positioned as a reform-led blueprint, the Budget places strong emphasis on scaling manufacturing across strategic and frontier sectors.
The financial plan aligns with India’s long-term economic vision of progressing towards a $5 trillion economy in the near term and achieving developed economy status under the Viksit Bharat 2047 vision. Structural reforms, industrial expansion, and sector-specific support measures form the backbone of this strategy.
A notable focus area is the labour-intensive textile sector. The Integrated Programme for the textile industry aims to stimulate demand, enhance competitiveness, and support overall sector development. Key measures include skill development, ease of doing business reforms, coastal infrastructure development, Mega Textile Parks, the Mahatma Gandhi Gram Swaraj initiative for khadi, handloom and handicrafts, and support for Technical Textiles. These initiatives are designed to strengthen global market linkages, improve branding, and boost export competitiveness.
Significant changes in the Customs Schedule have also been introduced to support domestic manufacturing. Long Staple Cotton has been moved to the First Schedule with zero Customs Duty, a step expected to support finished textile exports and enhance India’s share in global textile trade. Additionally, commission earned from foreign parties for facilitating imports into India will now be treated as an export of services, with no GST levied on such transactions.
Overall, the Union Budget 2026–27 emphasises reform, stability, and sectoral growth, reinforcing India’s commitment to building a resilient manufacturing ecosystem and future-ready economy.
