CMAI’S REACTIONS TO THE BUDGET 25-26
Santosh Katariya, President, Clothing Manufacturers Association of India:
Although no significant benefit or Scheme has been announced for the Textile Industry as such, I see a huge benefit for the Industry from two angles:
- On the Production side, the measures proposed for MSMEs, especially the Micro Sector, will certainly provide a boost to this Sector, especially the increase of various upper limits – though details are still not known; The Launch of the Cotton Mission could be a big step; Measures to improve competitiveness of Export Sector, Domestic Manufacturing Capacities, and Ease of Doing Business will all help give an impetus to Manufacturing; Lowering of Basic Customs Duties on certain Textile Machineries will also provide an impetus.
- On the Consumption side, the lowering of Income Tax at various levels will hopefully provide a huge increase in disposable income, increasing consumption; Various changes in the TDS and TCS limits should also give an impetus to Consumption.
In conclusion, a big Thumbs Up to the Budget 25-26, provided of course there are no twists in the fine print!
K V Srinivasan, Executive Director and CEO, Profectus Capital Private Limited:
Photo – Profectus Capital Private Limited
“The budget has provided a significant boost to the MSME sector by significantly raising the thresholds for capital investment and turnover criteria for classification as Micro, Small, or Medium enterprises. Combined with the enhanced credit guarantee scheme, this move is expected to drive increased capital investment. This would help MSMEs to modernise and expand their operations. Improved credit flow for startups is also a very welcome move. With the personal tax burden also coming down sharply, the increased consumption power should also help increase the overall demand for goods and services from MSMEs.”
Mr. Mihir V Shah, Executive Director, Vipul Organics Limited:
It is a fabulous budget with the focus on meeting the aspirations of the booming middle class. The Manufacturing Mission that the Hon’ble minister has set up will further the cause of Make in India and boost domestic manufacturing. Extending the Credit Guarantee Scheme for facilitating term loans for purchase of machinery and equipment without collateral or third party guarantee, to the MSMEs for up to ₹100 crore, is a welcome step and will ease the credit requirements of the sector. Structural reforms that focus on ease of doing business, especially with regards to time limit for Provisional assessments and TCS/TDS compliances are also a welcome step.
Kumar Rajagopalan, CEO, Retailers Association of India
Budget 2025 has delivered on several key expectations for the retail sector. The increase in income tax exemption to ₹12 lakh is a welcome relief for the industry that had witnessed reduced consumption in the past year. Better consumption means better business for retailers. The expansion of MSME benefits, including easier access to credit, customised credit cards, and the new Fund of Funds, should drive a wave of new products and innovations, increasing supply and competition in the market.
Ease of doing business has been a key focus, with regulatory simplifications and the push for state-level reforms expected to improve the retail environment. Gig worker recognition, with e-Shram ID cards and health cover, will support the growing omnichannel retail ecosystem by strengthening last-mile delivery and digital commerce.
Industry-specific measures, including support for the footwear, leather, toys, and electronics sectors, will help these industries scale up. Women workers in retail will benefit from initiatives like working women’s hostels and crèches, making workforce participation easier.
Overall, this is a progressive, growth-driven budget that strengthens retail, empowers businesses, and prioritises consumption as a key driver of economic momentum.
