Govt announces Cotton Mission, loom exemptions, and duty changes
The Union Budget 2025-26 has allocated ₹5,272 crore to the Ministry of Textiles, reflecting a 19 percent increase from the previous year’s budget estimate of ₹4,417.03 crore.
A five-year Cotton Mission has been introduced to enhance cotton productivity, particularly for extra-long staple varieties. This initiative aims to support farmers with scientific advancements, ensuring a steady supply of high-quality cotton while reducing import dependence and boosting India’s global textile competitiveness.
To modernise the textile industry, two new types of shuttle-less looms—Rapier Looms (below 650 meters per minute) and Air Jet Looms (below 1000 meters per minute)—have been fully exempted from customs duty, down from 7.5 percent.
Additionally, the Basic Customs Duty on knitted fabrics has been revised to “20 percent or ₹115 per kg, whichever is higher.” The government has also expanded duty-free imports for handicrafts by adding nine materials, including wool polish, sea shells, and cattle horn, while extending the export conversion period to one year.
Source: PIB Delhi
