Today, the Union Budget for 2025 was unveiled by the Honourable Union Finance Minister. Commenting on the Budget, Shri Bhadresh Dodhia, Chairman, MATEXIL (Manmade and Technical Textiles Export Promotion Council), stated, “The Budget is Positive , Pragmatic , Growth oriented and in line with contemporary requirements and is well-positioned to drive growth in the textiles sector.”
The Budget’s adjustment of the MSMEs’ investment and turnover classification criteria is one of its main features. Nearly 80% of the textile industry works inside MSME clusters, according to Shri Dodhia, and this modification will enable small businesses to grow, become more competitive, and play a major role in positioning India as a worldwide centre for textile manufacture.
The Basic Customs Duty (BCD) rates on knitted textiles, which are subject to nine tariff lines, have also seen significant changes as a result of the Budget. Previously stated rates of “10% or 20%” have been replaced with “20% or ₹115 per kg, whichever is higher.” Additionally, the list of textile equipment that is completely exempt now includes two additional shuttleless loom types. The Chairman of MATEXIL stated that these actions will improve the export competitiveness of the textile industry.
Additionally, Shri Bhadresh Dodhia expressed gratitude for the additional funding for important government programs including the Production-Linked Incentive (PLI) Scheme for Textiles, RoSCTL (Rebate on State and Central Taxes and Levies), and RoDTEP (Remission of Duties and Taxes on Exported Goods). He was certain that these measures would improve India’s standing in international markets and increase the export potential of technological and manufactured fibre textiles.