Key Budget 2025-26 highlights are as under which are in line with ASFI's Budget submissions / proposals / recommendations :

1. Under Chapter 60, Knitted Fabrics - Nine line items of Knitted Fabrics, the tariff rate is being revised from 10%/20% to "20% or Rs. 115 per kg, whichever is higher". By virtue of declaration under the Provisional Collection of Taxes Act, 2023, the revised duty rate will come into force with effect from the midnight of 1st February / 2nd February, 2025. [Clause 98 (a) of Finance Bill.]

2. Technical Textiles - There is duty free import i.e. NIL Customs Duty on shuttle less loom, i.e., Rapier Looms (below 650 meters per minute) and Shuttle less Air jet Looms (below 1000 meters per minute) to augment the Technical Textiles segment of Agri, Medical and Geo Textiles. It has been extended beyond 31st March, 2025.


3. There are also recommendations of the Export Promotion Mission to facilitate easy access to credit, face the non-tariff barriers in Export Markets to promote exports of Textiles and Apparel.

There are also Indirect measures of support for MSMEs, Personal Income Tax Proposal to have additional money to spend with the large middle class which shall indirectly boost the Textile Segment.

Chapter 60:

The tariff rate is being revised from 10%/20% to "20% or Rs. 115 per kg, whichever is higher" on knitted fabrics classified under tariff items 6004 10 00, 6004 90 00, 6006 22 00, 6006 31 00, 6006 32 00, 6006 33 00, 6006 34 00, 6006 42 00 and 6006 90 00. By virtue of declaration under the Provisional Collection of Taxes Act, 2023, the revised duty rate will come into force with effect from the midnight of 1st February / 2nd February, 2025. [Clause 98 (a) of Finance Bill read with Second Schedule refers.]