India Textile Industry Seeks Credit-Linked Capital Support Scheme

Textile manufacturers have urged the India Union Government to structure the CSS (Budget 2026–27) as a credit-linked subsidy to drive modernisation.

The proposal mirrors the Technology Upgradation Fund Scheme (TUFS) (1999–2022), which offered a 15% credit-linked subsidy, capped at ₹30 crore (US$3.31 million) and ₹20 crore (US$2.21 million).

Industry said ₹8,000+ crore (US$883 million) in TUFS subsidies remain pending, while ₹4 lakh crore (US$44.20 billion) was invested in machinery during 1999–2022.

The Union Government had earmarked ~₹35,000 crore (US$3.86 billion) under TUFS, significantly boosting technology upgrades.

Manufacturers, especially from Coimbatore, say a credit-linked model is more effective than production- or employment-linked subsidies.