Textile Stocks Rise 4%; Union Budget 2025 Unveils Cotton Productivity Mission & Loom Exemptions

Shares of homegrown textile companies witnessed significant gains following the Union Budget 2025 speech by Finance Minister Nirmala Sitharaman. The announcement of several supportive measures for the textile industry sparked optimism, with stock prices of various textile companies surging.

Stock Performance in the Textile Industry

Note: The stock price movements are as of February 1, 2025, around 2:57 PM.

Among the top performers, Aditya Birla Fashion and Retail rose by 4%, while companies like Vedant Fashions, and Ambika Cotton Mills also saw notable jumps.

Mission for Cotton Productivity to Boost Farmer Incomes

The surge in textile shares came after Sitharaman unveiled a “Mission for Cotton Productivity,” aiming to boost cotton farming productivity and sustainability. This five-year mission will target improvements in cotton farming techniques, promote the use of extra-long staple cotton, and ensure a steady supply of high-quality cotton. Additionally, the government will provide technological support to farmers to enhance their yields.

Sitharaman also emphasised the goal of boosting the production of agro-textiles, medical textiles, and geo-textiles. To facilitate this, the government will make advanced machinery more affordable, and the introduction of a customs duty exemption on certain types of shuttle-less looms will further reduce costs for textile manufacturers.

Customs Duty Changes

Another key announcement was the revision of the Basic Customs Duty (BCD) on knitted fabrics, which will now be set at either 20% or ₹115 per kg, whichever is higher. This revision aims to prevent cheaper imports from undercutting domestic textile producers while ensuring a fair market for Indian manufacturers.

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