The 2025-26 Union Budget has been met with cautious
optimism by the Clothing Manufacturers Association
of India (CMAI), particularly in light of the lack
of direct schemes or benefits for the textile industry.
However, CMAI believes there are notable positives that
could stimulate growth for the sector from both the
production and consumption sides.
On the production front, CMAI sees potential in the
measures aimed at bolstering MSMEs, especially within
the micro-sector.
While specifics remain unclear, the increase in upper
limits for MSMEs is expected to provide a significant
boost to smaller players in the textile industry.
The launch of the Cotton Mission is another key
highlight, with the promise of improving cotton supply,
potentially addressing a critical need for the industry.
Additionally, measures designed to enhance the
competitiveness of the export sector, expand domestic
manufacturing capacities, and ease business processes
are anticipated to further strengthen the manufacturing
base.
Another important step for the industry is the reduction
in basic customs duties on certain textile machinery.
CMAI believes this could provide a much-needed push
for modernisation and efficiency in textile
manufacturing.
On the consumption side, the lowering of income tax at
various levels is expected to boost disposable income,
which could drive greater consumption across the sector.
Changes in TDS and TCS limits also stand to enhance
overall consumer spending.
In conclusion, CMAI has given a thumbs-up to the
budget, though with the caveat that the details in the
fine print could have a significant impact.
The association also expressed concern about the
potential for an increase in GST rates for the textile and
apparel sector, which could dampen the positive effects
of the budget
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