India Budget: Mixed reaction from textile companies & retail brands

Textile companies and brands have given mixed reaction on interim budget presented by India’s finance minister Nirmala Sitharaman today. After deep scanning of budget provisions, textile companies have given thumbs up to finance minister for her visionary budget. However, they expressed disappointment over no action on core issues faced by the textile industry.

Sanjay Jain, managing director of TT Limited and former chairman of the Confederation of Indian Textile Industry (CITI) told Fibre2Fashion, “It is disappointing that no action was taken on removal of import duty on raw cotton. No measure is initiated to check flooding of knitted fabric from China. However, the budget remained unhappening. No major announcement was made as expected that the government may avoid any policy intervention before the general election.” He said that the government has provided ₹600 crore for cotton procurement, which is similar to average. Allocation for RoDTEP and RoSCTEL has increased up to 10 per cent. The government has allocated higher amount for technical textiles and R&D.

India’s textile companies and brands have mixed reactions to the interim budget presented by finance minister Nirmala Sitharaman in Parliament today.
The industry appreciated stable tax slabs but expressed disappointment over unaddressed industry issues.
They await the full budget for more comprehensive measures supporting the textile sector.

Commenting on budget provisions, Roshan S Bisht, Co-Founder & CEO, ASORT said, “It is reassuring to see that tax slabs remain unchanged. This stability ensures individuals can plan their finances with confidence. With more money left in people’s pockets, there’s a tangible boost to spending power, fostering economic growth and stability. It’s a testament to prudent fiscal policies that prioritise the well-being of citizens. Let’s seize this opportunity to invest wisely, support local businesses, and nurture our communities. Together, we can harness this financial resilience to build a brighter, more prosperous future for all.”

Jasveen Kaur, senior director of merchandising for garment sourcing at New Times Group, said, “The government strives to position India as a global leader in Apparel & Textiles. The goal has been to grow apparel & textile industry by up to 5 per cent of India’s GDP in coming years.” We are happy to hear that the finance minister redefined the Gross Development Product (GDP) to ‘governance, development and performance’. Kaur said that the minister also added that the government is committed to achieving a ‘Viksit Bharat’ by 2047. She welcomed that emphasizing a commitment for inclusive development, the government focuses on outcomes rather than outlays.

Ramesh Kapoor, chief financial officer, Numero Uno, said, “We appreciate that the finance minister has taken the initiative to declare the government’s intention to promote inclusive development, economic growth, and increased productivity under its Amrit Kaal vision.” Kapoor said that the focus on expanding opportunities for everyone, improving capacities, and supporting the creation of resources for investments is especially encouraging to retail and e-commerce sectors.

“We anticipate the introduction of particular policies and programmes. It is important that the policies make a path for a robust and progressive ecosystem. The government’s proactive attitude is greatly appreciated, and we anticipate that these measures will positively affect the retail and ecommerce scene, promoting economic development and realising the dreams of both consumers and enterprises,” he added.

Bharadwaj Rachamadugu, senior vice president, Sai Silks Kalamandir commented, “Increasing capital expenditure outlay by 33 per cent is going to be a big boost for overall growth of the economy, which will have percolating effect on the income levels, so as the increase in purchasing power. Any incremental spend on the capital expenditure will have a major impact on the overall economic growth which is very positive for expending the pie of middle class in the country. This would go a long way in supporting India consumption landscape across middle, low and upper end income levels, which is very positive for retailers.”

Rohan Gupta, managing director of Gargee Designer’s said, “We find great optimism in the budget presented by Nirmala Sitharaman. The emphasis on inclusive growth and sustainable development aligns seamlessly with our design philosophy. We believe in creating not just fashion but also narratives that resonate with the evolving global consciousness.”

He said that the revised estimates of 5.8 per cent economic growth demonstrates the country’s status as a global economy, which is encouraging for companies seeking to grow internationally. However, this was an interim budget, and “we eagerly await the detailed budget for more comprehensive insights into the initiatives and support for the clothing industry. We believe that the intricate details will unveil opportunities and avenues for innovative businesses like ours to actively participate in the story of India’s economy. I believe the future full budget will envision creating India as a powerhouse of manufacturing and retail.”

Gupta also welcomed the continuation of the RoSCTL scheme for apparel and garments export until March 31, 2026. He said that it is a positive move, which will surely support the expansion of the apparel and textile industries, fostering both local and global trade.

Fibre2Fashion News Desk (KUL)