India Budget 2026-27: Cotton & Textile Push to Boost Global Competitiveness

Budget 2026–27 introduces a National Fibre Scheme with ₹5,900 crore under Mission for Cotton Productivity to boost cotton availability.

The 11% import duty on cotton is flagged for removal to tackle quality shortages and support exports.

After duty exemption ended on 31 Dec 2025, cotton prices rose ~5%, while Brazilian cotton trades 15% higher.

India’s cotton costs are ~20% higher than global prices despite MSP protection.

The textile sector supports ~35 million jobs and contributes ~75% of India’s textile & apparel exports.