Central Budget 2025: Expectations for the Textile Industry and Key Announcements
The Central Budget 2025 is eagerly anticipated, with industries across India presenting their demands and expectations. Among them, the textile industry holds a significant position, contributing extensively to employment, exports, and the national economy. Particularly, regions like Tiruppur, Coimbatore, and Erode in Tamil Nadu serve as the hubs of India’s textile production, often referred to as the backbone of this sector.
1. The Journey of the Textile Industry and Current Scenario
The textile industry has a rich heritage and continues to be a pillar of India’s economy. Over the decades, it has evolved technologically and strategically, establishing a notable position in global markets.
- Historical Growth
Tiruppur began as a small-scale textile manufacturing center in the 1930s with a single knitting machine. By the 1980s, it achieved ₹50 crore in exports. Today, it generates ₹70,000 crore annually through domestic and export markets. - Current Performance
The industry recorded ₹36,000 crore in export revenue in 2023, marking a 12% growth over the previous year. - Global Standing
India ranks as the 6th largest textile producer in the world, contributing 5% to the global textile export market.
2. Challenges Faced by the Industry
Despite its growth, the textile sector has encountered multiple challenges in recent years:
- Cotton Shortages
Fluctuating cotton prices have driven up production costs significantly. - High Synthetic Yarn Costs
Manufacturers shifting to synthetic fibers have faced increased expenses. - Container Shortages
Export logistics have been hindered by a lack of container availability. - Decline in Domestic Demand
Stiff competition in the domestic market has resulted in reduced production levels.
3. Industry Demands
Key stakeholders in the textile industry have submitted several demands for inclusion in the Central Budget 2025:
- Subsidies for Technological Upgrades
Financial assistance to procure modern machinery is critical for enhancing efficiency. - Incentives for Green Factories
The government should promote eco-friendly manufacturing units by offering subsidies and incentives. - Simplified Credit Facilities
MSMEs (Micro, Small, and Medium Enterprises) in the textile sector need easy access to loans with minimal interest rates. - Establishment of a Dedicated Textile Board
A central authority to address the unique needs of the textile sector can streamline its growth.
4. Opportunities in the Global Market
India’s textile industry has a unique advantage due to the slowdown in manufacturing activities in competing countries like Bangladesh. Increased export orders to India highlight the potential for expansion. However, government intervention and support are essential to capitalize on these opportunities fully.
5. Expected Announcements
The Central Budget 2025 is expected to introduce initiatives that could significantly boost the textile sector:
- Production-Linked Incentive (PLI) Schemes
Expanding PLI schemes to include textiles can encourage local manufacturing. - Customs Duty Exemptions
Reducing customs duties on essential raw materials can lower production costs. - Enhanced Export Infrastructure
Upgrading container facilities and ports can improve export logistics and reduce delays.
6. Future Growth Targets
With the right policies and budgetary support, the following milestones can be achieved:
- India’s share in the global textile export market could exceed 10%.
- Employment opportunities in the textile sector could grow by 30%.
- The adoption of advanced technology and sustainable practices could establish India as a global leader in textile manufacturing.
Conclusion
The future of India’s textile industry hinges on the strategic decisions made in the Central Budget 2025. With favorable policies and targeted investments, the industry has the potential to transform India into a global textile powerhouse, driving economic growth and providing millions of livelihoods.
Budget will raise expectations… There be any new announcement to improve the textile sector…?
