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Surat: Some big announcements have been made for the industry in the union budget 2026-27 presented by Finance Minister Nirmala Sitharaman. There are special packages and schemes announced for industries ranging from semiconductors to textiles and MSMEs.
President of SGCCI Nikhil Madrasi said, “The chamber had demanded a special scheme to set up a Center of Excellence in India for the textile sector. In the budget, Union Finance Minister Nirmala Sitharaman had announced a fund to set up a Center of Excellence. Apart from this, the chamber had also demanded a Cluster Wise Upgradation Fund, which was also announced in the budget. He further said that the aspirations of the people have been fulfilled in this budget. The general budget is a development-oriented budget that maintains development along with development.”
In addition, the chamber demanded that provisions be made to reduce logistics costs. The Finance Minister announced liquidity support for MSMEs. A transaction settlement program has been announced for liquidity support for small businesses. A Self India Fund will be created, which will provide direct assistance to micro enterprises, a credit guarantee support mechanism will be created and the JEM portal will be linked to trade. Government institutions have been instructed to design modular courses for professional support.
SGCCI vice-president Ashok Jirawala said, “Mega Textile Park and National Fiber Scheme have been announced for the textile industry in the budget. A special scheme was announced for textile growth in rural areas, which was also demanded by the chamber. The Chamber has also been demanding a textile university in Surat for many times. In the budget, Finance Minister Nirmala Sitharaman announced the establishment of a textile university in an industrial area. In addition, a provision of up to Rs 10 crore per unit has been made in the CGTMSE scheme for micro small enterprises, which was up to Rs 5 crore. This matter has also been demanded by the Chamber many times. Due to this, the economic development of Surat will increase at double the speed.”
The budget has announced the implementation of a faceless mechanism in the customs clearance process under the customs warehousing framework, which will increase transparency and reduce time and cost. The time limit for binding advance rulings in the customs department, which is currently three years, has been increased to five years, due to which traders will get long-term policy clarity and stability in business. In addition, a reduction in the TCS rate applicable for foreign travel has been announced, which will provide relief to the middle class and the travel and service sector.
A Self-Reliant India Fund for Micro Enterprises will be created for MSMEs. Artisans will be encouraged and helped through the National Handloom Policy, in which technical assistance will be provided by the Academic Institute. In addition, under Mahatma Gandhi Gram Swaraj, production, training and marketing of Khadi and handicrafts have been encouraged. One District One Product will be given a boost. In addition, an initiative has been taken to equip India in the field of technology through the India Semiconductor Mission (ISM 2.0). Under this, special provisions have been made for creating Indian IP and supply chain in production.
CA Mitish Modi said that Rs 5000 crore per CER has been allocated for five years under the City Economic Region (CER). Apart from this, allocation has been made under the BHARAT VISTAAR scheme for the purpose of multilingual use of AI tools in the agriculture sector as well. Rs 10000 crore has been allocated in the MSME Growth Fund. As a result, small and medium-sized enterprises in the textile sector and other sectors of Surat and South Gujarat will get a boost for industrial development.
On the other hand, the definition of cooperative society has been expanded in the new Income Tax Act, which will come into effect from April 1, 2026, to include multi-state cooperative societies and hence now multi-state cooperative societies will also be able to avail tax deduction benefits under the Income Tax Act from the tax year 2026-2027. In addition, the proposal to provide tax deduction benefits to cooperative societies engaged in cattle feed and cotton seeds activities on income earned is also very welcome.
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