Budget 2025: Textile stocks zoom up to 10% after FMs support measures

Budget 2025: Individually, Ambika Cotton Mills popped 9.95 per cent, Welsupn Living rallied 5.19 per cent, Adinath Textiles rose 5.91 per cent, Season textiles jumped 4.42 per cent

Budget 2025: Shares of homegrown textile companies surged up to 10 per cent after Union Finance Minister, Nirmala Sitharaman announced a slew of supporting measures for the textile industry in her Budget 2025 speech on Saturday.

 

Individually, Ambika Cotton Mills popped 9.95 per cent, Welsupn Living rallied 5.19 per cent, Adinath Textiles rose 5.91 per cent, Season Textiles jumped 4.42 per cent, Soma Textiles and Industries up 4.85 per cent, Winsome Textiles Industries gained 3.87 per cent and Ashnoor Textile Mills surged 3.47 per cent on the BSE among others in Saturday’s intraday trade. 

 

The textile shares gained momentum after the Finance Minister launched a ‘Mission for Cotton Productivity’ which will benefit lakhs of cotton growing farmers.

 

 

The 5-year mission will facilitate significant improvements in productivity and sustainability of cotton farming, and promote extra-long staple cotton varieties, Sitharaman said in her Budget 2025 speech.  Also Read: Budget 2025: Kisan Credit Card limit increased from Rs 3 to 5 lakh

 

Further, the government will provide the best of science and technological support to farmers. “Aligned with our integrated 5F vision for the textile sector, this will help in increasing incomes of the farmers, and ensure a steady supply of quality cotton for rejuvenating India’s traditional textile sector,” Sitharaman said. 

 

Moreover, the FM said that the government aims to boost the production of agro-textiles, medical textiles, and geo-textiles by making advanced machinery more affordable.

 

To achieve this, two additional types of shuttle-less looms will now be fully exempted from import duties, reducing costs for textile manufacturers.

 

Revised BCD on Knitted Fabrics

 

The Union Finance Minister also announced a change in Basic Customs Duty (BCD) on certain knitted fabrics (covered under nine specific tariff lines). Earlier, the duty was either 10 per cent or 20 per cent (depending on the fabric type). Now, the duty will be "20 per cent or Rs 115 per kg, whichever is higher."

 

This ensures that cheaper fabrics still attract a reasonable customs duty, preventing under-invoicing and protecting domestic textile manufacturers.