Dr A. Sakthivel, Chairman, AEPC, has welcomed the Union Budget 2026–27 as a decisive and forward-looking roadmap that reinforces India’s ambition to emerge as a resilient, sustainable, and globally competitive textile and apparel manufacturing powerhouse.
According to Dr Sakthivel, the Budget successfully aligns growth, self-reliance, employment generation, and sustainability into a cohesive national vision, while sending a strong signal to global buyers and investors about India’s long-term intent as a trusted sourcing destination.
The Union Budget 2026–27 has charted a decisive and forward-looking course for India’s textile and apparel sector, reinforcing the nation’s ambition to emerge as a resilient, sustainable, and globally competitive manufacturing powerhouse.
Commenting on the Budget Dr A. Sakthivel described it as “forward-looking, growth-oriented and balanced,” noting that it reflects the Government’s strong commitment to building a future-ready textile and apparel ecosystem. According to him, the Budget sends a clear signal of intent to position India as a trusted, globally integrated sourcing destination.
Strong Push for MSMEs and Export Competitiveness
At the heart of the Budget lies a significant boost for SMEs and MSMEs, which form the backbone of India’s apparel and textile exports. Measures aimed at improving liquidity, simplifying export procedures, and reforming customs processes are expected to reduce transaction costs and enhance operational efficiency. These steps will significantly improve the ease of doing business for exporters and strengthen India’s competitiveness in global markets.
The strengthening of the Trade Receivables Discounting System (TReDS) stands out as a transformative intervention. Mandatory onboarding of Central Public Sector Enterprises (CPSEs), enhanced credit guarantee support through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), integration with the Government e-Marketplace (GeM), and the introduction of TReDS receivables as asset-backed securities together promise improved access to affordable finance. This comprehensive approach is expected to stabilise cash flows and enable MSMEs to scale operations with confidence.
Infrastructure, Innovation and Value Addition
The proposal to establish Mega Textile Parks through a challenge mode, with a strong focus on technical textiles and value-added segments, is expected to attract large-scale investments and create economies of scale. Complementing this, the Textile Expansion and Employment Scheme aims to modernise traditional textile clusters through capital support for advanced machinery, technology upgradation, and common testing and certification facilities.
These initiatives are expected to significantly enhance productivity, improve quality standards, and generate employment, particularly in MSME-dominated regions that form the core of India’s apparel manufacturing ecosystem.
Self-Reliance Across the Fibre Value Chain
A key highlight of the Budget is the announcement of the National Fibre Scheme, which marks an important milestone in strengthening India’s raw material base. Covering natural fibres such as silk, wool and jute, along with man-made and new-age fibres, the scheme adopts an integrated approach to reduce import dependence while promoting innovation and sustainability.
Further, the Mahatma Gandhi Gram Swaraj Initiative is expected to revitalise khadi, handloom and handicrafts, ensuring inclusive growth and improved rural livelihoods while preserving India’s rich textile heritage.
Skilling, Sustainability and Global Trust
With the launch of Samarth 2.0, the Government has reaffirmed its focus on human capital development. By modernising the textile skilling ecosystem through deeper collaboration with industry and academic institutions, the initiative aims to bridge skill gaps and create meaningful employment, especially for youth and women.
Equally significant is the Tex-Eco Initiative, a timely intervention to promote environmentally responsible and globally competitive textiles and garments. As sustainability and traceability become central to global sourcing decisions, this initiative strengthens India’s positioning as a reliable supplier of sustainable fashion.
Trade Facilitation and Ease of Doing Business
Trade facilitation measures announced in the Budget, including recognition of trusted importers, reduced cargo verification, and factory-to-port clearance through electronic sealing, are expected to lower logistics costs and shorten export timelines. Additionally, the National Handloom and Handicrafts Programme, which seeks to integrate and scale existing schemes, has been welcomed as a holistic approach to strengthening India’s heritage sectors.
Towards a Viksit Bharat
Overall, AEPC has expressed strong confidence that the Union Budget 2026–27 will catalyse export growth, strengthen domestic manufacturing, advance sustainability, and accelerate India’s journey towards becoming a global textile and apparel powerhouse, fully aligned with the vision of a Viksit Bharat.
For India’s textile and fashion industry, the Budget is not merely an annual financial statement, but a strategic blueprint for long-term global leadership.
