One of the primary expectations from the budget is the relaxation of GST rates. By reducing GST rates on raw materials like cotton, yarn, and dyes, as well as finished goods, the cost burden on manufacturers would be eased, making Indian textiles more competitive globally. This move would not only benefit the industry but also contribute to the government's goal of increasing exports and creating a favorable business environment for investments.
The textile sector also seeks the expansion of production-linked incentive (PLI) schemes to cover more segments of the industry. Currently, the PLI schemes primarily focus on promoting the manufacturing of certain products like mobile phones and electronic components. By extending these incentives to cover segments such as man-made fiber (MMF) fabrics and technical textiles, the industry believes it would attract investments and incentivize technological advancements in these areas.
Another important area the sector wants the budget to address is research and development (R&D). Increasing the allocation for R&D in areas like sustainable fibers, advanced materials, and textile machinery would drive innovation and propel the sector forward. With growing global demand for sustainable fashion, investing in R&D for cleaner technologies and materials would not only benefit the industry but also align with the government's vision of promoting sustainable practices.
In terms of ease of doing business, the textile sector seeks the simplification of labor laws and regulations. Streamlining these laws would improve the overall business environment for textile companies and attract more investments. Additionally, focusing on infrastructure development in textile clusters, including roads, power, and logistics, would further create a conducive environment for the industry to thrive.
Sustainability and skill development are also at the forefront of the sector's expectations. Encouraging the use of organic cotton, recycled materials, and cleaner technologies would enhance the sector's environmental consciousness and cater to the growing demand for sustainable fashion. Investing in skill development programs for textile workers would address the shortage of skilled labor and equip them with the necessary skills for the evolving industry.
Promoting exports, supporting the handloom and handicrafts sector, and establishing a textile technology mission are other key areas of focus for the sector. Financial incentives and market access initiatives could help boost textile exports and increase India's share in the global market. Measures to support the handloom and handicrafts sector, such as improved marketing and branding initiatives, would preserve traditional skills and livelihoods. Furthermore, setting up a dedicated textile technology mission could drive innovation and technological advancements in the sector, enhancing its overall competitiveness.
While these are just some of the expectations the textile sector has from the upcoming budget, it is crucial to acknowledge that the measures announced by the government will depend on various factors such as the overall economic situation and government priorities. However, addressing these key areas has the potential to significantly boost the Indian textile sector, making it a major driver of economic growth and job creation.
In conclusion, the textile sector in India is eagerly awaiting the upcoming interim budget for 2024-25 and has outlined a range of expectations. The industry hopes for fiscal measures such as relaxation of GST rates and expanded production-linked incentive schemes. It also seeks measures to ease of doing business, including simplification of labor laws and infrastructure development. Sustainability and skill development are also crucial areas, with a focus on promoting sustainable practices and investing in skill development programs. Furthermore, the sector looks for measures to promote exports, support the handloom and handicrafts sector, and establish a textile technology mission. By addressing these expectations, the budget has the potential to propel the Indian textile sector towards greater competitiveness, sustainability, and growth.
References
(1) Interim Budget 2024: Textile and apparel industry seeks tax incentives .... https://economictimes.indiatimes.com/small-biz/sme-sector/interim-budget-2024-textile-and-apparel-industry-seeks-tax-incentives-infra-boost-for-growth/articleshow/107281018.cms.
(2) India Budget 2024-25: Fashion leaders expect major ... - Fibre2Fashion. https://www.fibre2fashion.com/news/textile-news/india-budget-2024-25-fashion-leaders-expect-major-policy-initiatives-292599-newsdetails.htm.
(3) Textile Ministry probably gets a marginal rise of 2.5% in the Budget 2024. https://www.apparelviews.com/textile-ministry-probably-gets-a-marginal-rise-of-2-5-in-the-budget-2024/.
(4) Textiles ministry may get marginal budget increase of 2.5%. https://www.livemint.com/budget/expectations/textiles-ministry-may-get-marginal-budget-increase-of-25-11706550169688.html.
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