New Delhi: With Finance Minister Nirmala Sitharaman set to present the Union Budget 2025-26 on February 1, the textile and apparel industry players are looking for strategic interventions to drive growth, strengthen infrastructure, and enhance global competitiveness. From funding and incentives to supply chain reforms and sustainability measures, industry leaders have clear expectations from the government.
Funding and PLI scheme modifications: A critical need
Industry experts stress the need for enhanced financial support to help India capture a larger share of the global textile market. Sharing his thoughts, Ketan Sanghvi, chairman at India ITME Society said, “Funding is the need of the hour as global trade shifts in India’s favor. The industry is awaiting the reintroduction of the Technology Upgradation Fund Scheme (TUFS 2.0), which could attract investments and boost textile machinery manufacturing.”
While the Production-Linked Incentive (PLI) scheme has supported growth, there is consensus that modifications are necessary to better suit the capital-intensive textile sector.
Resonating the thoughts on technical upgrades and sharing his expectations, Akhil Jain, executive director of Jain Amar (Madame) said, “There’s a strong possibility that the government will increase funding or revamp the PLI scheme for textiles, especially as the sector continues to show growth potential.”
Further sharing his opinion, Sanghvi said, “The existing framework must be adjusted to accommodate the industry’s low-margin, high-capital nature. Flexible investment targets and wider MSME participation would make the scheme more effective.”
Infrastructure & supply chain priorities
Highlighting the need for robust supply chains, Jain said, “Modern warehousing, better road and port connectivity, and digital supply chain integration will have an immediate impact in reducing costs and lead times.” Developing textile parks with integrated facilities can help SMEs scale up, attract investments, and create employment opportunities, he added.
Raw material price volatility: Calls for stabilization measures
The rising costs of cotton and synthetic fibers remain a concern, with industry experts pushing for policy interventions. “A stabilization fund and financial tools like hedging could help mitigate raw material price volatility. Strengthening the Minimum Support Price (MSP) for cotton and maintaining strategic reserves for key inputs are necessary steps,” Jain suggested.
Strengthening tier 2 & 3 city clusters
With textile clusters emerging in smaller cities, targeted funding for infrastructure, skill development, and technology adoption is seen as vital. “More allocation should be directed toward Tier 3 cities to create specialized hubs for different textile categories, such as denim or technical textiles, ensuring the entire value chain operates efficiently,” Sanghvi noted.
Apparel brands weigh in: Retail & innovation expectations
Apparel brands are looking forward to policies that ease business operations, boost innovation, and drive retail growth.
Anand Aiyer, CEO of Arrow, emphasized the need for policies that enhance ease of doing business. “This budget is a pivotal moment to drive innovation and strengthen consumer confidence. We hope for initiatives that foster retail growth and simplify business operations,” he said.
Sharing thoughts on the global importance of sustainability and global expansion, Siddharth Dungarwal, founder of Snitch said, “We anticipate measures that support sustainable manufacturing, simplify tax structures, and empower local brands to scale internationally.”
Highlighting the role of digital transformation, Rahul Dayama, founding partner of Urbanic said, “Reducing import duties, streamlining logistics, and improving digital infrastructure will lower costs and unlock new growth opportunities for D2C brands. Supporting local manufacturing and sustainable sourcing will ensure global competitiveness.”
As the textile and apparel industry awaits the Union Budget, the key asks remain clear—strategic funding, PLI refinements, logistics upgrades, and sustainability-driven policies. The upcoming announcements will determine how well India’s textile ecosystem can navigate challenges and capitalize on emerging global opportunities.
