As we look ahead to the 2026 Union Budget, the textile and apparel industry is hopeful that the government will consider measures that strengthen sectoral resilience and global competitiveness. Recent international trade turbulence including elevated US tariffs and ongoing global supply chain disruptions has placed significant pressure on key textile and apparel export hubs. Tariff shocks of up to 50 per cent have severely impacted order continuity for MSME manufacturers operating on already thin margins. Targeted fiscal support for such clusters will be critical to safeguarding jobs, sustaining exports, and preserving India’s manufacturing base.
At the same time, the Budget must help textile and apparel exporters fully leverage upcoming trade agreements, particularly the UK-India and EU-India FTAs. With the UK-India agreement alone expected to add over £25 billion in annual bilateral trade over time, and the EU already accounting for goods trade worth around €120 billion with India, timely policy alignment can enable Indian textile suppliers to scale faster, improve market access, and strengthen India’s position as a reliable global sourcing hub.
In parallel, accelerating on-ground execution of PM MITRA parks should be a key priority, as they are central to building a globally competitive, integrated textile manufacturing ecosystem. With an outlay of Rs 44.45 billion through 2027–28 and investment commitments exceeding Rs 420 billion, faster infrastructure development will directly enhance manufacturing scale, efficiency, and India’s standing within international supply chains.
Finally, the Budget must place stronger emphasis on productivity-linked skilling in the textile and apparel sector. While the Samarth scheme has been extended till March 2026, greater focus on productivity-led upskilling and supervisor-level capabilities will be critical to sustaining global competitiveness.
This view is presented by Sanjay Jain, Group CEO, PDS Limited