Budget 2026–27 seen as key for India's textile dyeing upgrade

Mihir V Shah, executive director of Vipul Organics Ltd, highlighted that shifting global sourcing patterns are creating fresh opportunities for Indian dye manufacturers and textile processors alike. He said India can deepen its role in global chemical supply chains, but the Budget must prioritise investment in chemical and textile processing park infrastructure, streamline environmental approvals, and improve logistics efficiency for both domestic movement and exports.

For textile dyeing and printing units, which are among the most capital-, energy- and water-intensive segments of the apparel value chain, industry stakeholders, including the All India Textile Processors Association (AITPA) and regional associations, are seeking higher budgetary support for common effluent treatment plants, zero liquid discharge systems and shared utilities. Such investments are seen as essential to help clusters such as Tiruppur, Surat, Ludhiana and Panipat meet tightening domestic and international environmental norms without eroding margins.

The sector is also calling for targeted incentives for technology upgrades in dyeing and printing, including low-liquor-ratio dyeing machines, digital and pigment printing technologies, heat recovery systems and automation-driven colour management. Industry bodies expect enhanced depreciation benefits, easier access to long-term credit and interest subvention for green capital expenditure to significantly accelerate adoption across processing units, particularly MSMEs.

Cost competitiveness remains a major concern. Textile processors and dye manufacturers, supported by representations from AITPA, the Dyestuffs Manufacturers Association of India (DMAI) and export councils, are urging rationalisation of customs duties on dye intermediates and speciality chemicals, along with relief from high power and steam costs. Support for captive renewable energy and cleaner fuel adoption is viewed as critical to sustaining dyeing and printing operations amid rising compliance and energy pressures.

Working capital stress is another recurring issue for the processing segment. Faster GST refunds, stable regulatory frameworks and simplified compliance procedures—long-standing demands of TEA and textile processing associations—are expected to ease liquidity constraints for export-oriented dyeing and printing units, many of which operate on thin margins and face high order volatility.

Industry leaders believe that with the right policy mix in the Union Budget 2026–27, India can strengthen its position as a reliable global hub for sustainable textile dyeing and printing, backed by a competitive domestic dye and chemical industry. Such alignment is expected to support higher-value textile exports, generate skilled employment and enable a smoother transition towards cleaner, technology-led textile processing.

ALCHEMPro News Desk (KUL)