Union budget gets strong backing from South India Spinners association

The South India Spinners Association welcomed the Union Budget 2026–27 presented in Parliament on February 1 by Union Finance Minister Nirmala Sitharaman, describing it as progressive and growth-oriented for the textile and manufacturing sectors.
In a statement issued here, the Association President R. Arun Karthik said the Budget reflected the Government of India’s continued focus on strengthening the economy, boosting manufacturing, empowering MSMEs, and supporting key sectors through targeted reforms and initiatives.
He said several announcements would benefit the textile value chain, particularly the proposed integrated fibre and textile strategy, including the National Fibre Scheme, aimed at strengthening natural and man-made fibre capacities and enhancing global competitiveness.
The launch of the Mahatma Gandhi Handloom Scheme, he added, would provide renewed momentum to khadi, handloom, and village industries, supporting rural employment and the wider textile ecosystem.
Highlighting the focus on mega textile parks, modernisation, and skilling initiatives, the Association President said these measures would stimulate investment, foster innovation, and upgrade capabilities across the sector.
He also welcomed the emphasis on domestic manufacturing, infrastructure development, and export support, which would enable textile mills to scale operations and improve export performance.
While welcoming the overall direction of the Budget, R. Arun Karthik urged the government to consider additional measures in future budgets to ensure the global competitiveness of Indian spinning mills.
He reiterated the demand for exemption from the 11 per cent import duty on cotton during periods of domestic price volatility, noting that high raw material costs adversely impact yarn exports.
The Association President also called for further rationalisation of duties on key textile inputs and capital equipment, extension of Production Linked Incentive-type support to the cotton value chain, dedicated incentives for green technologies and renewable energy adoption, strengthened export finance support, and the creation of a dedicated fund to promote digitalisation and Industry 4.0 adoption among textile MSMEs.
He said the Union Budget 2026–27 provided a progressive roadmap for the textile sector and that with focused support for spinning mills and value-chain integration, the industry could significantly enhance employment generation, exports, and its contribution to the national economy.