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Home News India’s union budget 2025: Key demands from the textile industry

India’s union budget 2025: Key demands from the textile industry

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India’s union budget 2025: Key demands from the textile industry

India’s union budget 2025: Key demands from the textile industry

As India anticipates the Union Budget 2025, the textile industry is looking for a comprehensive and forward-thinking policy framework that will address its pressing issues and unlock growth potential. The sector, which is a significant contributor to the Indian economy, employing millions and generating substantial export revenue, is facing several challenges that stakeholders hope will be addressed in the upcoming budget.

The textile industry has been grappling with several challenges, including:

  1. High Raw Material Costs: The escalating prices of raw materials such as cotton, yarn, and synthetic fibers have been eating into profit margins for textile manufacturers. Stakeholders are hoping for a reduction in duties and taxes on these raw materials to ensure affordability and sustainable production.
  2. Technological Advancements: While global textile industries are rapidly advancing, Indian manufacturers still rely heavily on outdated machinery, which hinders their ability to compete internationally. The sector is calling for more government support for upgrading machinery and adopting cutting-edge technologies.
  3. Environmental Sustainability: As global demand shifts towards eco-friendly production practices, the Indian textile sector faces the challenge of transitioning to more sustainable methods. The industry is advocating for more incentives for sustainable and green practices, including financial support for recycling and waste management systems.
  4. Skill Development and Labor Issues: The textile industry employs a vast number of workers, but there remains a significant skills gap. Industry players are calling for more training programs and initiatives to improve workforce productivity and efficiency.
  5. Global Competitiveness: Despite being one of the world’s largest producers of textiles, India faces stiff competition from countries like China, Bangladesh, and Vietnam, especially in the global export market. The industry has urged the government to offer more support in terms of market access, trade policies, and export incentives.

As the Union Budget draws nearer, the Indian textile industry is hoping that the government will address these issues and provide much-needed relief and reforms. Key demands include:

  1. Reduction in GST and Duty on Raw Materials: The industry has long sought a reduction in the Goods and Services Tax (GST) and customs duties on raw materials. This would help bring down production costs, especially for small and medium enterprises (SMEs) that are struggling to cope with rising material costs.
  2. Incentives for Innovation and Research: With a rapidly changing global market, innovation is crucial to staying competitive. The textile industry is requesting tax breaks and subsidies for R&D activities, especially for the development of sustainable fabrics and new manufacturing techniques.
  3. Support for Export Promotion: To boost India’s textile exports, the industry is asking for increased export incentives, easier access to foreign markets, and better trade agreements with key export destinations. Strengthening India’s position in global trade would also benefit the sector in the long term.
  4. Green Manufacturing Incentives: As sustainability becomes a global imperative, textile manufacturers are seeking more government backing to adopt eco-friendly technologies and practices. This includes financial support for projects that reduce water usage, energy consumption, and carbon emissions.
  5. Skill Development Initiatives: A skilled workforce is critical to the growth of any industry, and the textile sector is calling for more investment in training programs, especially for those in small towns and rural areas where a significant portion of the workforce is based.
  6. Infrastructural Support: Improved infrastructure, including better logistics, transportation, and technology hubs, is essential for the textile industry to thrive. The sector has expressed the need for more budgetary support in these areas to enhance productivity and competitiveness.

India’s textile industry holds immense potential to grow and create more jobs, but it needs a supportive policy environment to thrive. As the Union Budget 2025 approaches, all eyes are on the Finance Minister to see if the government will meet these expectations and create a more favorable climate for this vital sector.

Industry experts believe that if the budget delivers the right reforms, the textile sector can increase its global market share, improve domestic production, and contribute significantly to India’s economic growth in the coming years.