Indian textile, retail sectors seek trade-ready push in Budget 2026–27

Sanjay Jain, group CEO of PDS Limited, said, “Recent international trade turbulence including elevated US tariffs and ongoing global supply chain disruptions has placed significant pressure on key textile and apparel export hubs. Tariff shocks of up to 50 per cent have severely impacted order continuity for MSME manufacturers operating on already thin margins. Targeted fiscal support for such clusters will be critical to safeguarding jobs, sustaining exports, and preserving India’s manufacturing base.”

Jain added that government alignment with the new FTAs could unlock market access worth over €120 billion in the EU and £25 billion in the UK, driving a fresh wave of apparel sourcing from India. He also called for rapid execution of PM MITRA Parks and a sharper focus on productivity-linked skilling under the Samarth scheme.

From the fashion-tech and direct-to-consumer (D2C) segment, Balaji Kannan, CFO of Virgio, emphasised that Budget 2026 is pivotal to empowering sustainable growth. “Enhancing working capital access through MSME schemes, amplified PLI 2.0 allocations for textiles to supercharge tech adoption and zero-waste manufacturing coupled with cotton import duty exemptions and PM MITRA Park fast-tracking - these measures will empower homegrown brands to compete globally while boosting jobs and exports—aligning perfectly with Viksit Bharat’s vision.”

For the retail sector, Abhinav Kumar, co-founder of Brand Concepts Limited, called attention to the GST burden on higher-end apparel. “The increase in GST on apparel priced above ₹2,500 to 18% has added pressure on the bridge-to-luxury segment, impacting pricing flexibility and demand. A more graded tax structure would support sustainable premiumisation,” he said. Kumar also stressed the importance of PLI-linked domestic manufacturing for luxury goods, tighter anti-counterfeiting enforcement, and strong data-privacy norms to protect brands and consumers alike.

With renewed momentum from global trade agreements, the textile, apparel, and retail industry is looking to Budget 2026–27 for policy support that can translate opportunity into sustainable economic impact.

ALCHEMPro News Desk (KUL)