The Union Budget for the financial year 2025-26 has introduced significant measures to support and invigorate India’s textile industry. With strategic allocations, technology-driven initiatives, and export growth opportunities, the budget aims to position India as a global textile leader.

Budget Allocation and Growth

The budget allocation for the Ministry of Textiles has seen a substantial increase:

Financial Year	Allocation (₹ Crores)	Growth (%)
2024-25	4,417	–
2025-26	5,272	19%

This 19% increase underscores the government’s commitment to bolstering the textile sector.

Focus on Technology Upgradation

A key highlight is the allocation of ₹635 crores under the Amended Technology Upgradation Fund Scheme (ATUFS), aimed at:

• Enhancing technological capabilities
• Improving production efficiency
• Promoting sustainability in textile manufacturing

The Five-Year Cotton Mission

The government has launched a Five-Year Cotton Mission focusing on:

• Boosting cotton production, especially extra-long staple varieties
• Addressing stagnant productivity levels
• Providing scientific and technological support to farmers

This initiative is expected to improve the quality and quantity of cotton, benefiting both domestic producers and exporters.

Leveraging Global Market Dynamics

Impact of Bangladesh’s Crisis: The political and economic instability in Bangladesh has created an opportunity for India to expand its garment exports. Key data highlights:

Country	Export Growth (%)
India (to US)	+4.25%
Bangladesh	Decline

India’s strengthened position in the global textile market is driven by its ability to meet increasing demand from key markets such as the US, Europe, UK, and UAE.

Export Performance

India’s textile export performance remains robust:

Year	Total Exports (USD Billion)	Apparel Share (%)
2023	34	42%

This growth trajectory reflects India’s expanding footprint in the global textile industry.

Job Creation Potential

The Indian textile industry is projected to grow significantly:

Year	Industry Size (USD Billion)	Projected Jobs (Crores)
2030	350	3.5

This growth is expected to generate approximately 3.5 crore jobs, contributing to employment and economic development.

Policy Objectives

The Union Budget 2025-26 outlines key objectives for the textile sector:

• Support Local Production: Encouraging domestic manufacturing to reduce import dependence.
• Enhance Export Capabilities: Strengthening India’s position in global markets.
• Focus on Quality: Improving the quality of textile products through technological advancements.

Conclusion

The Union Budget 2025-26 sets a clear roadmap for the growth and modernization of India’s textile industry. Through increased financial support, strategic initiatives, and leveraging global opportunities, the government aims to make India a leading player in the global textile market.