Surat's Key Industries Applaud Union Budget 2026 as a Boost for Growth
In a significant show of support, the textile and diamond industries in Surat, along with the Southern Gujarat Chamber of Commerce and Industry (SGCCI), have warmly welcomed the Union Budget 2026 presented by Finance Minister Nirmala Sitharaman. The budget, hailed as "development-oriented" and aligned with the "Sabka Saath Sabka Vikas" vision, has addressed several long-standing demands from these vital sectors of Gujarat's economy.
Textile Sector Receives Major Thrust
The textile industry, a cornerstone of Surat's industrial landscape, has particularly benefited from the budget announcements. SGCCI President Nikhil Madrasi expressed satisfaction, noting that most of their demands were met. Key initiatives include:
- A special scheme to establish a Centre of Excellence for the textile sector.
- A cluster-wise upgradation fund to modernize traditional textile clusters in cities like Surat, Bhiwandi, Tirupur, and Ichalkaranji.
- The establishment of a textile university in industrial areas to foster research and development, creating job opportunities for graduates.
- The National Fibre Mission, aimed at boosting domestic production of specialty yarn and fibre.
Ashok Jirawala, President of the Federation of Gujarat Weavers Association, highlighted the benefits of the mega textile park and national fibre scheme. He emphasized that a special scheme for textile growth in rural areas will particularly empower women. Additionally, the National Handloom Policy and initiatives under Mahatma Gandhi Gram Swaraj are set to provide technical assistance and marketing support for Khadi and handicrafts, boosting the "One District One Product" initiative.
Diamond and Jewellery Sector Gains from Reforms
The diamond, gems, and jewellery industry has also welcomed several budget measures designed to enhance liquidity and exports. Notable announcements include:
- Removal of the Rs 10 lakh cap on international e-commerce, enabling MSMEs, artisans, and small jewellery brands to reach global buyers directly.
- Permission for SEZ units to sell certain goods in the domestic market at concessional duty rates, helping utilize idle capacity and maintain cash flow.
- Faster, trust-based customs processes with digital appraisals to reduce delays and costs.
- Extension of the duty deferment period for Authorised Economic Operators from 15 to 30 days, improving cash flow for exporters.
Kirti Bhansali, Chairman of the Gems and Jewellery Export Promotion Council (GJEPC), termed the budget "growth-focused" and highlighted measures such as the Rs 10,000 crore SME Growth Fund and Rs 2,000 crore support for micro units. These are expected to ease credit and drive expansion in a sector where MSMEs constitute over 80% of the industry.
Broader Economic and MSME Support
The budget introduces comprehensive support for micro, small, and medium enterprises (MSMEs) and other sectors. Key features include:
- The creation of a Self Reliant India fund to provide direct assistance to micro-enterprises.
- A transaction settlement programme for liquidity support to small businesses.
- Enhancement of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme, facilitating collateral-free loans up to Rs 10 crore.
- Special packages for semiconductors, textiles, and MSMEs to foster innovation and growth.
Vijay Mewawala, former SGCCI President, welcomed the faceless mechanism in customs clearance, which is expected to increase transparency and reduce time and cost. Bijal Jariwala, SGCCI Honorary Secretary, noted that the abolition of import duty on specific raw materials for exporting textile and leather products will give a significant boost to the industry.
Future Outlook and Global Competitiveness
Industry leaders are optimistic about the budget's impact on Surat's economic development. Dinesh Navadiya, Chairman of the Indian Diamond Institute in Surat, highlighted the announcement of a new National Institute of Design to strengthen design talent and innovation. This move is expected to help Indian manufacturers move up the value chain and compete more effectively in global markets, contributing to the goal of scaling exports to $100 billion by 2047.
Overall, the Union Budget 2026 has been met with widespread approval in Surat, with stakeholders confident that it will accelerate growth, support job creation, and enhance the global competitiveness of India's textile and diamond sectors.
