Overall Effect: Favourable
1)From FY 24–25 revised numbers of Rs 3342 crores to Rs 5252 crores, the budget allocation grew sharply (mostly for ATUF & PLI, which indicates incentive monies would flow to industry quicker).
2) A five-year Cotton Mission was launched to increase output and productivity; India currently has no excess of cotton and has one of the lowest yields (450 kg/hectare) compared to the worldwide average of 800 kg or more. This would significantly enhance the cotton-based economy.
3) All knitted fabric HS codes are subject to a flat 20% import duty or Rs 115/kg, whichever is higher. This eliminates the possibility of leaks and applies a Rs 115/kg import charge to any fabric that weighs less than Rs 575/kg. It also helps the local MMF-based sector by preventing the entry of cheap textiles into the nation.
4) Shuttleless looms are now included in the Technical Textiles Machinery import duty exemption list.
5) Consumption-driven budgeting: As middle-class income rises, more clothing and house textiles are purchased.
6) Textiles dominate the MSME sector, with a large number of female entrepreneurs; any programs aimed at assisting them will have a direct effect on the textile manufacturing industry.