As anticipation builds around the Union Budget 2025, industry leaders are articulating their expectations for fiscal policies that can catalyze economic growth and sectoral resilience. The textile and cotton industries, integral to India’s agrarian economy and global trade footprint, are poised at a critical juncture. Kushal Patel, Managing Director of Axita Cotton, outlines key fiscal and policy interventions that could fortify the sector and enhance its global competitiveness.
"The cotton industry is a cornerstone of India's agricultural and manufacturing landscape, sustaining millions of livelihoods across the value chain. For robust and inclusive growth, the Union Budget 2025 must prioritize liquidity access for MSMEs engaged in cotton processing and textile manufacturing. Targeted credit instruments, concessional interest rates, and enhanced working capital provisions can mitigate financial constraints, enabling businesses to invest in automation and capacity expansion, thereby improving productivity and export readiness."
Patel also underscores the need for fiscal incentives to encourage sustainable cotton farming. "With shifting global trade dynamics favoring sustainable and ethically sourced textiles, India must position itself as a leader in this space. The government should introduce tax deductions, input subsidies, and preferential financing for farmers adopting organic and regenerative agricultural practices. Such measures will not only enhance long-term yield efficiency but also elevate India’s standing in high-value export markets."
Beyond agricultural incentives, Patel advocates for substantial capital outlays in rural infrastructure. "A well-integrated supply chain is critical for price stability and efficiency in cotton trade. The government must allocate funds for logistical modernization, including rural roads, warehousing, and digital platforms for real-time commodity pricing. These interventions will enhance market linkages, reduce post-harvest losses, and improve farmgate realization."
Export promotion remains another pivotal area for policy recalibration. Patel suggests that a structured approach to trade facilitation—including rationalization of tariffs, export subsidies, and preferential trade agreements—can significantly enhance India’s share in the global textile supply chain. "A calibrated export strategy, backed by fiscal support and diplomatic trade negotiations, will bolster India's position as a dominant cotton exporter, driving foreign exchange inflows and employment generation across the sector."
With textiles accounting for a substantial share of India’s industrial output and employment, these strategic interventions could drive long-term economic stability, global competitiveness, and sectoral resilience. As the government prepares to unveil Budget 2025, industry stakeholders remain optimistic that forward-looking policy measures will be implemented to unlock the full potential of India's cotton and textile industry.
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