AEPC Highlights Union Budget Measures Supporting India’s Apparel MSMEs

Dr. A. Sakthivel, Chairman of the Apparel Export Promotion Council (AEPC), commented on the Union Budget 2026–27, noting its focus on strengthening India’s textile and apparel sector. The budget includes measures aimed at supporting MSMEs, enhancing liquidity, promoting sustainability, and improving global competitiveness.

“The Budget 2026–27 provides a significant boost to SMEs and MSMEs, which form the backbone of India’s apparel and textile exports. The emphasis on providing liquidity, ease of exports, particularly through customs-related reforms and simplified documentation procedures, will reduce transaction costs, enhance efficiency, and improve the overall ease of doing business for exporters,” Dr. Sakthivel said.

He added that strengthening the Trade Receivables Discounting System (TReDS), with mandatory onboarding of Central Public Sector Enterprises (CPSEs), credit guarantee support through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), linkage with Government e Marketplace (GeM), and the introduction of TReDS receivables as asset-backed securities, will enhance liquidity, affordable finance access, and cash-flow stability for MSMEs.

AEPC also welcomed the proposal to establish Mega Textile Parks in challenge mode, with a focus on value addition in technical textiles, which is expected to attract investment, increase scale, and strengthen India’s presence in high-growth segments. The Textile Expansion and Employment Scheme aims to modernise traditional clusters through capital support for machinery, technology upgrades, and common testing and certification centres, enhancing productivity, quality, and employment opportunities, particularly in MSME-focused clusters.

The announcement of the National Fibre Scheme is intended to support self-reliance across natural fibres including silk, wool, and jute, as well as man-made and new-age fibres. This approach is expected to reduce import dependence while supporting innovation. The Mahatma Gandhi Gram Swaraj Initiative will target khadi, handloom, and handicrafts, promoting inclusive growth and rural livelihoods.

The launch of Samarth 2.0 is designed to modernise the textile skilling ecosystem through collaboration with industry and academic institutions, addressing skill gaps and supporting employment, especially for youth and women.

The Tex-Eco Initiative aims to promote globally competitive and sustainable textiles and apparel, reinforcing India’s position as a supplier of environmentally responsible fashion. Trade facilitation measures, including recognition of trusted importers, reduced cargo verification, and factory-to-port clearance using electronic sealing, are expected to lower logistics costs and improve ease of doing business.

AEPC also welcomed the National Handloom and Handicrafts Programme, which seeks to integrate and expand existing schemes.

Dr. Sakthivel expressed confidence that the Union Budget 2026–27 will accelerate export growth, strengthen domestic manufacturing, promote sustainability, and support India’s goal of becoming a global textile and apparel hub, in line with the vision of a Viksit Bharat.