Union Budget 2025-26: A Vision for Sustainable Fashion and Innovation in the Textile Sector

The Union Budget 2025-26 unveiled by the government is a transformative blueprint for India’s textile and apparel sector. With a strong focus on sustainable growth, innovation, and people-centric initiatives, the budget signals a major leap towards making India a global leader in responsible fashion and sustainable manufacturing.

Investment in Innovation and Deep Tech

One of the standout features of this year’s budget is the ₹20,000 crore investment dedicated to driving innovation, coupled with the establishment of a Deep Tech Fund. This funding will play a critical role in accelerating the adoption of next-generation technologies within the textile and apparel industries. For brands focusing on sustainable fashion, such as those supported by the Good Fashion Fund, this will be a pivotal step toward integrating disruptive technologies in production and manufacturing processes.

The Five-Year Mission for Cotton Productivity

The government’s commitment to enhancing cotton production through a five-year Mission for Cotton Productivity will ensure the availability of high-quality, sustainable raw materials essential for responsible fashion. By securing a resilient cotton supply chain, India’s textile ecosystem can continue to meet the growing demand for eco-friendly and ethical apparel.

Saksham Anganwadi and Poshan 2.0: Focus on Human Capital Development

Another notable initiative is the Saksham Anganwadi and Poshan 2.0 scheme, which aligns with the vision of human capital development. By prioritizing nutrition and early childhood care, this initiative reinforces the importance of long-term economic resilience, fostering a workforce that is healthy, skilled, and ready to contribute to the growth of India's textile sector.

Good Fashion Fund’s Commitment to Sustainable Manufacturing

At the heart of this vision, Mr. Jayanth Kashyap, Investment Lead at Good Fashion Fund, states, "We remain committed to supporting manufacturers in India’s textile ecosystem by facilitating access to capital for sustainable and disruptive production solutions." This commitment aligns with the government’s goal of fostering innovation and empowering manufacturers to implement sustainable practices. By providing funding and resources, the Good Fashion Fund is helping textile businesses transition toward more responsible production methods.

A Vision for India's Sustainable Fashion Future

As the textile and apparel sector continues to evolve, the Union Budget 2025-26 paves the way for India to become a global hub for sustainable fashion. The allocation for innovation, the emphasis on cotton productivity, and the initiatives for human capital development come together to create an ecosystem where responsible fashion can thrive. The sector is poised for growth, with a stronger focus on ethical production, environmental responsibility, and technology-driven solutions.

- By Mr. Jayanth Kashyap, Investment Lead, Good Fashion Fund