Budget boosts textile competitiveness, says SIMA

The Southern India Mills Association (SIMA) has lauded the Union Budget 2025-26 for its positive impact on the textile industry's global competitiveness. SIMA Chairman, SK Sundararaman, welcomed the announcements, particularly those addressing cotton productivity and MSME support. The Budget's allocation of Rs 600 crores to enhance cotton productivity and sustainability, focusing on high-yielding seeds and ELS cotton promotion, aligns with the Prime Minister's 5F vision, said Sundararaman. He highlighted the potential of reviving ELS cotton production, which could significantly boost exports and create jobs. He noted the ongoing collaborative efforts between the Ministries of Agriculture and Textiles to improve cotton yields.

SIMA also appreciated the revised MSME sales turnover criteria, which will enable more textile businesses to access crucial support. The 20 per cent import duty on knitted fabrics is expected to curb cheaper imports and bolster domestic production. The extension of customs duty exemption on textile machinery until 2027 was also welcomed.

The Chairman praised the Export Promotion Mission for easing access to export credit and addressing non-tariff barriers. Other beneficial announcements included the credit guarantee scheme for MSMEs, support during stress periods, and initiatives in skill development, infrastructure, and non-conventional energy. SIMA expressed gratitude to the Prime Minister, Finance Minister, Agriculture Minister, Commerce and Industry Minister, and Textiles Minister for their support.