The rhythmic clatter of looms in the small weaving clusters of Andhra Pradesh’s Guntur district is underscored this year by a sense of urgency, as Mangalagiri’s famed handloom artisans look to the upcoming Union Budget for relief.

In the historic temple town, weavers say their centuries-old craft is under mounting strain from rising input costs, limited institutional backing and an overall decline in financial viability. Many now view the 2025–26 Union Budget, to be presented on 1 February, as a critical opportunity for the government to revive a sector fighting to stay afloat.

Call for GST relief and cheaper raw materials

A key demand emerging from the industry is the removal of GST on yarn, dyes and other essential inputs. Stakeholders say the tax burden has pushed up production costs sharply, squeezing already thin margins and threatening livelihoods in a trade that supports thousands of families.

Weavers argue that eliminating GST on these materials would provide immediate cost relief and help restore competitiveness for handloom products.

Appeal for targeted government measures

Alongside tax relief, the community is urging Finance Minister Nirmala Sitharaman to introduce sector-specific interventions, including:

  • Subsidised loans to ease credit access for small weavers and cooperative societies.

  • Lower prices for raw materials, which have surged significantly in recent years.

  • Medical insurance schemes tailored to handloom workers, many of whom suffer health issues linked to long hours at traditional looms.

Weavers say that without dedicated support, the cultural and economic legacy of Mangalagiri textiles could continue to erode.

Budget comes at a crucial moment

This year’s budget will be the second full budget of the Modi government’s third term. For artisans in Mangalagiri, it represents more than a routine financial exercise — it may determine whether an age-old craft can withstand the pressures of a modernising marketplace.