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Corporate Update

CITI Urges Union Budget To Futureproof India’s Textile And Apparel Sector

• By  Textile Excellence
• January 21, 2026

The Confederation of Indian Textile Industry has called on the Union Budget 2026 to deliver targeted policy measures to futureproof India’s textile and apparel sector, citing rising global pressures and domestic cost challenges. CITI stated that decisive reforms are essential to strengthen resilience, innovation, and global competitiveness across the value chain.

India’s textile and apparel sector remains the second largest source of employment in the country and a key contributor to GDP and exports. The industry also plays a central role in the national ambition of building a US$350 billion textile and apparel economy by 2030. CITI Chairman Ashwin Chandran said policy certainty and structural support could create a stronger growth ecosystem aligned with the Viksit Bharat vision.

CITI outlined a series of priority budget measures. These include removal of import duty on all cotton varieties, revision of the minimum support price formula to align with global benchmarks, and creation of a Cotton Price Stabilisation Fund. The industry body also flagged the need to ensure man-made fibre availability at globally competitive prices.

Technology and sustainability formed another key focus area. CITI recommended a Green Technology Scheme to support MSMEs in clean energy transition, revival of a technology upgradation support mechanism, promotion of indigenous textile machinery manufacturing, and rationalisation of higher power costs.

Trade facilitation remains critical amid external shocks. Indian textile exports to the US were valued at nearly US$11 billion in FY25, accounting for almost 28% of total sector exports. The recent 50% US tariff imposed in August 2025 has heightened risks to jobs and revenues, reinforcing the urgency for budgetary support and export relief.

CITI outlined a series of priority budget measures. These include removal of import duty on all cotton varieties, revision of the minimum support price formula to align with global benchmarks, and creation of a Cotton Price Stabilisation Fund. The industry body also flagged the need to ensure man-made fibre availability at globally competitive prices.