Shares of domestic textile businesses rose by much to 10% after Union Finance Minister Nirmala Sitharaman unveiled a series of assistance measures for the textile sector in her Budget 2025 address on Saturday.
In Saturday’s intraday trade, Ambika Cotton Mills jumped 9.95 percent, Welsupn Living rallied 5.19 percent, Adinath Textiles jumped 5.91 percent, Season Textiles jumped 4.42 percent, Soma Textiles and Industries jumped 4.85 percent, Winsome Textiles Industries gained 3.87 percent, and Ashnoor Textile Mills soared 3.47 percent on the BSE, among others.
Textile stocks rose as the Finance Minister announced a ‘Mission for Cotton Productivity’ to help lakhs of cotton growers. Sitharaman said in her Budget 2025 address that the 5-year goal would help cotton farmers enhance production and sustainability while promoting extra-long-staple cotton cultivars.
Furthermore, the government will offer farmers the finest scientific and technological support possible. “Aligned with our integrated 5F vision for the textile sector, this will help increase farmers’ incomes and ensure a steady supply of quality cotton for rejuvenating India’s traditional textile sector,” Mr. Sitharaman added. Furthermore, the FM stated that the government intends to increase the production of agro-textiles, medical textiles, and geo-textiles by making sophisticated technology more accessible.
Modified BCD for Knitted Fabrics:
The Union Finance Minister also modified Basic Customs Duty for certain knitted materials. Previously, the duty was either 10% or 20%. Now, the duty will be “20 percent or Rs 115 per kg, whichever is higher.” This guarantees that lower-cost materials face an appropriate customs charge, limiting under-invoicing and preserving domestic textile businesses.
