The Union Budget for FY 2025-26 introduces key reforms to promote domestic production of technical textile products such as agro textiles, geo textiles and medical textiles at competitive prices. The inclusion of two more shuttle-less looms in the list of fully exempted textile machinery is a progressive step toward expanding production capacity in textile manufacturing. The government’s emphasis on Atmanirbharta through increased indigenous textile production aligns well with the proposed revision of the Basic Customs Duty (BCD) rate on knitted fabrics across nine tariff lines—from 10 per cent or 20 per cent to 20 per cent or Rs 104 per kg, whichever is higher. The government’s commitment to providing technical and R&D support for cotton farmers under the 5 years mission is a welcome move. This initiative is expected to improve cotton farming efficiency and promote diverse cotton varieties.
The opinion is presented by Rajeev Gupta, CEO, RSWM