India’s textile, apparel and MSME ecosystem has interpreted the India Budget 2026–27 as a signal of intent rather than headline-driven announcements, with industry leaders pointing to a clear policy shift towards manufacturing depth, cluster-based growth and long-term competitiveness.

From a global sourcing and export perspective, Sanjay Jain, Group CEO of PDS Ltd, welcomed the integrated vision outlined in the Budget. “As a sector that provides direct employment to over 45 million people and supports nearly 100 million livelihoods indirectly, these measures are both timely and impactful,” he said. Jain highlighted the thrust on public capital expenditure, champion MSMEs, Samarth 2.0 and Tex-Eco, adding that PM MITRA parks and cluster modernisation will help reduce import dependence and strengthen MMF apparel and technical textiles. “This Budget reinforces confidence in India’s journey towards becoming a globally integrated, high-quality manufacturing hub,” he said.

Highlighting supply-chain realignments, Priyavrata Mafatlal, vice-chairman of Arvind Mafatlal Group and MD of Mafatlal Industries, said the Budget improves planning visibility for manufacturers. “The thrust on fibre supply, scale and value addition will help stabilise input costs, improve margins and enable positive investment decisions,” he said. Mafatlal also welcomed the focus on skilling aligned with automation, digitalisation and AI, calling it essential to bridge the industry’s employability gap.

India’s textile and apparel industry views the Budget 2026–27 as a strategic signal focused on manufacturing depth, MSME-led growth and long-term competitiveness rather than headline announcements.
Industry leaders highlighted cluster revival, MSME financing, skilling and sustainability as key positives, while flagging unresolved concerns around power costs and fibre competitiveness.

Gautam Ganeriwal, executive director of Sitaram Spinners Pvt Ltd, said the Budget reflects learning from ground realities. “Every Budget needs to be read not for announcements, but for intent. From a textile industry lens, today’s Budget carries a clear signal: India wants manufacturing depth, not just manufacturing headlines,” he said. Ganeriwal highlighted the Integrated Programme for Textiles, revival of 200 legacy clusters, strengthened MSME finance through TReDS, and professional support via Corporate Mitras as meaningful interventions. However, he noted that cost competitiveness remains unresolved, citing power tariffs, cross-subsidies and fibre cost distortions, while calling for the removal of import duty on cotton and MMF raw materials.

From a policy and advisory lens, Kanishk Maheshwari, co-founder and MD of Primus Partners, said textiles have emerged as a spotlight sector. “The focus on modernised infrastructure and skill upgradation will provide a significant boost to foreign investments and link indigenous textile units to global value chains,” he said.

MSME-focused reforms were another major theme. Rohit Mahajan, founder and managing partner of Plutos ONE, said the ₹10,000 crore MSME Growth Fund marks a decisive shift from subsidies to scale-led competitiveness. “The integration of GeM with TReDS and the move to make receivables tradable as asset-backed securities directly address working capital challenges and lower the cost of capital for MSMEs,” he said, adding that such reforms will support tariff-resilient, export-ready enterprises.

Echoing long-term optimism, Nitin Jain, founder of Ivyn, said the revival of 2,000 clusters, creation of the MSME growth fund and establishment of mega textile parks signal sustained commitment. “These measures will modernise the textile and garment ecosystem, enabling scale, innovation and global competitiveness,” he said.

Industry stakeholders said that while the Budget sets a strong structural direction for textiles, garments and MSMEs, effective implementation, power-sector reforms and fibre cost competitiveness will be critical to translating intent into sustained growth.

New-age D2C fashion brands have welcomed the Budget, saying its export-oriented measures, cluster modernisation and sustainability focus create a stronger foundation for Indian brands looking to scale globally while building value-added manufacturing at home. Siddharth Dungarwal, founder of Snitch, said the Budget takes a decisive step towards positioning India as a global textile and apparel powerhouse. “The focus on export enablement, duty rationalisation for leather and synthetic goods, and the removal of the courier export value cap will significantly benefit brands and manufacturers looking to scale internationally,” he said.

Dungarwal added that the integrated policy approach covering fibres, skilling, cluster modernisation, sustainability and technical textiles reflects a long-term vision for the sector. “For new-age D2C brands and exporters, this Budget creates the right foundation to compete globally while building value-added manufacturing capabilities in India,” he said.

From the perspective of women-led D2C businesses, Tejasvi Madan, founder of Beyond Bound, said the Budget could go further in addressing the specific needs of emerging fashion exporters. She called for a dedicated export-readiness programme for D2C fashion brands, faster GST refunds and duty drawback timelines, and simplified cross-border payment and forex compliance.

Madan also highlighted the need for special credit lines and incubation support for women-founded apparel start-ups, along with plug-and-play shared manufacturing facilities and capital subsidies for flexible, small-batch production. “Incentives for sustainable and circular fashion, R&D support for next-generation fabrics, modern skilling for athleisure and technical apparel, and a ‘Made in India Activewear’ global branding mission would significantly accelerate responsible growth,” she said.

Industry observers said the Budget’s export facilitation measures and manufacturing-led focus provide momentum for India’s fast-growing D2C fashion ecosystem, while targeted policy refinements could further help home-grown brands compete in global markets.

Fibre2Fashion News Desk (KUL)