TEXTILE & APPAREL INDUSTRY | Union Budget 2026–27 Reactions

India’s textile and apparel industry stakeholders have shared their views on the Union Budget 2026–27, highlighting its impact on fibre security, manufacturing scale, skilling, sustainability, exports and global competitiveness.

Abhishek Dua, Co-Founder, Showroom B2B

“The Budget’s integrated approach towards strengthening the labour-intensive textile sector is a positive and much-needed step for India’s apparel manufacturing ecosystem. The focus on fibre self-reliance, modernisation of textile clusters, and targeted support for handloom and handicraft segments addresses long-standing structural gaps across the value chain.
Initiatives such as the National Fibre Scheme and capital support for machinery and technology upgrades will help manufacturers improve productivity, quality standards and supply reliability, which are critical for both domestic growth and export competitiveness. The proposal to set up mega textile parks further strengthens the ecosystem by enabling scale, shared infrastructure and compliance readiness.
For apparel manufacturers supplying large-scale value fashion retailers, these measures provide greater confidence to plan capacity, invest in modernisation and generate sustained employment while remaining globally competitive.”

Priyavrata Mafatlal, Vice-Chairman, Arvind Mafatlal Group & Managing Director, Mafatlal Industries

 Mr. Priyavrata Mafatlal

“This Budget marks a very important tone in the emerging Indian economy during a global shift in supply chain realignments. The Finance Minister’s focus on self-reliance, competitiveness, and jobs in the textile sector is a positive development for the sector’s operating dynamics and planning visibility for manufacturers and exporters. The Budget’s continued support for fiber supply and the clear thrust towards scale and value addition will help stabilize input costs, improve margins, and enable companies to take a positive call on capacity expansion and export commitments. The thrust on modernization of textile clusters and technical and value-added manufacturing is expected to improve productivity, quality, and speed-to-market, which are critical drivers of global competitiveness.

Today, there is no doubt that there is a gap between the availability of jobs and the demand for skilled manpower in the industry. To position India in the global employability index, it is essential that there is upskilling of both the existing and new workforce in technology, digital, and AI skills. The Budget’s emphasis on education, employment, and enterprise will definitely help bridge this gap by ensuring that skilling is aligned with the needs of the new manufacturing sector, where automation, digital engineering, and technology-driven services are being increasingly integrated. For Mafatlal Industries, such a vision will help invest more in advanced manufacturing, sustainability, and innovation, while developing a future-ready workforce to fuel their long-term export agenda.”

Madhu Sudhan Bhageria, Chairman and Managing Director, Filatex India Ltd.

“We see the Union Budget 2026-27 as a comprehensive and forward-looking framework for strengthening India’s textile ecosystem, particularly through its integrated approach to fibers, manufacturing, skilling and sustainability. The proposed National Fibre Scheme, with its focus on man-made fibres alongside natural and new-age fibres, is a timely recognition of how the global textile industry is evolving and of India’s growing role within it.

We believe initiatives such as the Textile Expansion and Employment Scheme and SAMARTH 2.0 can play a meaningful role in modernising clusters, upgrading technology and building a skilled workforce aligned with industry requirements. For manufacturers, this emphasis on capital support, testing infrastructure and skilling is critical to improving productivity, quality and global competitiveness.

For a company like Filatex India Ltd., which operates at the upstream end of the man-made fibre value chain, these measures support a more robust downstream ecosystem, improve demand visibility and encourage long-term investments in capacity, quality and value-added products. The emphasis on the Text-ECON initiative further reinforces the industry’s shift towards sustainable and globally competitive textiles, a direction that is closely aligned with Filatex’s ongoing focus on circular recycling, responsible manufacturing and traceability through its Ecosis sustainability platform.

Overall, we believe the Budget lays a strong foundation for a more resilient, globally competitive and sustainable textile industry, encouraging capability building and investment across the value chain.”

Suketu Shah, CEO, Vishal Fabrics Ltd.

“The Union Budget 2026-27 provides a well-balanced and forward-looking roadmap for the textile industry in India, stressing upon on self-sufficiency, modernization, and employment generation. The integrated approach to the National Fibre Scheme, the Textile Expansion and Employment Scheme, and the focus on cluster development is a recognition that the competitiveness of the industry can be improved by making the value chain stronger.

The focus on fibre security in natural, man-made, and new fibres tackles the existing challenge in the industry regarding input volatility and quality, which is essential for capacity planning and export competitiveness. On the other hand, the call for the modernization of the traditional textile sector through technology upgradation, joint testing facilities, and certification assistance will ensure that the gap between the country’s manufacturing capabilities and new global standards is bridged.

The shift in focus to Samarth 2.0 is a move made in the right direction towards developing an industry-ready workforce that is in line with automation, efficiency, and scale. Further, the challenge mode development of mega textile parks along with the SME Growth Fund of ₹10,000 crore will definitely have a positive impact on the MSME sector. On the whole, the Budget has created a robust foundation for a resilient and future-ready textile sector and is a confidence booster for the entire textile value chain in India.”

Rajeev Gupta, Joint Managing Director, RSWM Ltd.

Mr. Rajeev Gupta

“The Union Budget 2026–27 presents a decisive and reform-led roadmap for the textile sector, firmly positioning it within India’s strategy to scale manufacturing, reduce import dependencies and generate employment. The announcement of an Integrated Programme for Textiles, with clearly defined sub-parts, reflects a holistic policy approach that addresses the entire value chain, from fibre security to skilling, sustainability and global competitiveness.

The National Fibre Scheme is particularly significant in strengthening self-reliance across natural, man-made and new-age fibres, while mitigating supply-chain vulnerabilities amid global disruptions. Complementing this, the Textile Expansion and Employment Scheme will accelerate modernisation of traditional clusters through technology upgradation, testing and certification infrastructure, directly enhancing productivity, quality and formal employment, especially in MSME-led regions.

The consolidation of handloom and handicraft interventions, along with the Mahatma Gandhi Gram Swaraj Initiative, reinforces inclusive growth by strengthening artisans, weavers and rural enterprises through market access, branding and skilling. The continued focus on Samarth 2.0, Tex-Eco and mega textile parks, particularly with an emphasis on technical textiles, signals strong intent to future-proof the sector. With effective implementation, these measures can significantly strengthen India’s position as a globally competitive, sustainable and resilient textile manufacturing hub.”

Sanjay Jain, Group CEO, PDS Ltd.

“We welcome the integrated vision for the Indian textile and apparel sector outlined in the Union Budget 2026. As a sector that provides direct employment to over 45 million people and supports nearly 100 million livelihoods indirectly through allied industries and MSME clusters, these measures are both timely and impactful. The continued thrust on public capex, creation of champion MSMEs, and targeted support for labour-intensive sectors like textiles will significantly strengthen India’s global competitiveness.

The launch of SAMARTH 2.0 is a positive step towards modernising the skilling ecosystem through deeper collaboration between industry and academic institutions, while enhancing productivity across export-oriented clusters. At PDS, we are deeply committed to building a learning-driven culture through a structured three-tier learning and development framework. Our approach is anchored in the globally recognised 70-20-10 learning model, where the majority of learning takes place on the job, supported by peer and mentor interactions and formal training programmes.

Further, the Text-ECON initiative sends a strong signal of India’s ambition to emerge as a global hub for sustainable and value-added textiles. The renewed focus on PM MITRA mega textile parks, along with targeted capital support and infrastructure upgrades for traditional clusters, is expected to drive higher investments and accelerate sectoral growth. These measures will also strengthen domestic manufacturing by reducing import dependence and promoting the production of man-made fibre (MMF) apparel and technical textiles.

We believe these initiatives will also help boost exports and reduce logistics costs, further enhancing the competitiveness of Indian textiles in global markets. This Budget reinforces confidence in India’s journey towards becoming a globally integrated, high-quality manufacturing hub under the vision of Viksit Bharat.”