
As Finance Minister Nirmala Sitharaman prepares to unveil the Union Budget 2025, the textile industry, dominated by Micro, Small, and Medium Enterprises (MSMEs), is eagerly anticipating measures to address critical challenges and unlock its full potential. MSMEs contribute significantly to India’s manufacturing output and exports, yet face hurdles that hinder their growth.
The textile sector, a vital component of the Indian economy, employs millions and contributes substantially to the nation’s GDP. However, access to finance remains a major constraint. A significant portion of textile MSMEs struggle to secure timely funding, creating a substantial credit deficit. Additionally, a large number of these businesses remain unregistered, limiting their access to government support and financial assistance. Delayed payments from larger corporations and government entities further exacerbate cash flow problems.
Industry stakeholders are advocating for several key reforms in the upcoming budget. Easing lending criteria for MSMEs is a primary concern. Streamlining GST regulations is another crucial demand, with calls for simplifying the tax structure and potentially lowering rates for smaller businesses. The sector also seeks increased incentives for women-owned textile businesses, recognizing their growing contribution and the unique challenges they face.
Beyond financial constraints, the textile industry grapples with regulatory complexities, hindering operational efficiency. Simplifying compliance procedures and establishing a single regulatory body are suggested solutions. Furthermore, enhancing productivity through skills development programs and promoting technology adoption are seen as vital steps. The industry also anticipates investments in infrastructure, including dedicated textile industrial zones, to bolster growth.
The Union Budget 2025 presents a crucial opportunity to address these challenges and pave the way for a thriving textile sector. Targeted interventions, including improved access to finance, simplified regulations, and support for technology upgrades, are essential for unlocking the sector’s potential and driving economic growth. The textile industry is hopeful that the budget will deliver measures that foster innovation, enhance competitiveness, and create a more conducive environment for MSMEs to flourish.