The Union Budget 2026-27, presented by Smt. Nirmala Sitharaman on February 1, 2026, is designed as a futuristic, growth-oriented blueprint, aimed at establishing India as a global manufacturing hub and securing its position as the world’s third largest economy. The Budget described as Reform Express, focuses heavily on scaling up manufacturing across key strategic and frontier sectors.
The Budget provides a clear roadmap to move towards a $5 trillion economy within a few years and a developed economy status (Viksit Bharat) by 2047.
This Budget also lays a strong emphasis on strengthening the labour-oriented textile sector. Integrated Programme for textile sector included in the Budget aims to boost demand, enhance competitiveness and support over all development through skill development, ease of doing business and various other measures such as development of Coastal Infrastructure, Mega Textile Parks, Mahatma Gandhi Gram Swaraj initiative to strengthen khadi, handloom and handicraft, Technical Textiles, etc. These measures will help in creating global market linkage and branding, bolster demand and enhance our export-competitiveness.
One of the important changes in the Customs Schedule, which is aimed at providing relief to enable manufacturing is to move Extra Long Staple Cotton to First Schedule (zero Customs Duty). This will boost exports of our finished textile products and increase India’s share in the world textile markets. Also commission earned from a foreign party for facilitating import of goods into India will be treated as an export of services, and no GST will be charged on the same.
Overall, Union Budget 2026-27 focuses on reforms and stability to make India future ready.
Mumbai (Vinay N. Kotak)
Date: 2nd February 2026 President
