The Clothing Manufacturers Association of India (CMAI) has welcomed the Union Budget 2026–27, terming it a well-structured and outcome-driven package that demonstrates the Government’s intent to modernise India’s textile value chain, strengthen livelihoods, and enhance the sector’s competitiveness across domestic and global markets.
CMAI noted that the Budget addresses the textile economy in a holistic manner. The announcement of the National Fibre Mission, with its focus on self-reliance in natural fibres, man-made fibres, and special-use fibres, is viewed as a critical step towards ensuring raw material security and reducing import dependence. Complementing this, the Mission for Cotton Productivity aims to improve yields, promote extra-long staple cotton varieties, and extend science and technology support to farmers—measures expected to enhance farm incomes while ensuring consistent, high-quality cotton supplies for the industry.
The association highlighted the Budget’s positive approach toward the revival and inclusion of traditional textile segments. Initiatives such as the Mahatma Gandhi Gram Swaraj Initiative will promote khadi, handloom, and handicrafts at scale, while the proposed National Handloom and Handicrafts Programme seeks to integrate and strengthen existing schemes, improve market access, and drive value addition for artisans and small producers. The focus on modernising traditional clusters and generating employment is expected to directly benefit cluster economies and sustain millions of livelihoods.
CMAI also welcomed the Government’s emphasis on skilling and modernisation. Programmes such as Samarth 2.0, along with broader skilling ecosystem initiatives, are expected to equip workers with contemporary manufacturing and design skills, enabling productivity gains and faster adoption of Industry 4.0 technologies. National Centres of Excellence and other skill development initiatives were seen as vital for supporting the transition toward higher-value manufacturing.
On sustainability, CMAI appreciated the introduction of the Textile Eco Initiative, aimed at developing world-class, environmentally sustainable textiles and garments. Alongside this, the planned establishment of new Mega Textile Parks in mission mode is expected to attract investments, strengthen compliance and traceability, and create integrated hubs for scale, quality control, and exports.
The association found the trade and customs measures practical and supportive of industry needs. The exemption of specified shuttle-less looms and textile machinery from basic customs duty will reduce capital expenditure barriers, while tariff rationalisation for knitted fabrics and duty concessions for exporter inputs will enhance value addition and export competitiveness.
Beyond sector-specific initiatives, CMAI acknowledged several cross-cutting reforms in the Budget that will benefit textiles, including enhanced credit availability for MSMEs, higher guarantee covers, tailored credit cards for first-time entrepreneurs, the Export Promotion Mission, BharatTradeNet, and the National Manufacturing Mission to further strengthen Make in India objectives.
CMAI observed that while the Budget prioritises long-term supply-side and structural interventions over immediate consumption stimulus, the emphasis on fibre security, capacity building, skilling, and sustainability lays a strong foundation for durable growth. The association noted that the current allocation of ₹1,500 crore for the Integrated Textile Programme may need enhancement in the coming years to deliver deeper sectoral impact.
Overall, CMAI assessed the Budget as constructive and forward-looking, balancing reforms across farm-to-factory linkages, skills, sustainability, and exports. The association expressed its readiness to work closely with the Government to ensure effective implementation and ensure benefits reach farmers, artisans, workers, and textile enterprises across the country.
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