The textile industry has long added value to brand India as the second largest employer in the country, and we look forward to a Union Budget that supports a growth spurt and some much-needed momentum to Home Apparel and Textiles.
A focus on PLIs (Production Linked Incentive Scheme) for the $200 billion industry will give it the ability to scale up and compete with other global textile markets like China. Previously the PLIs for the Textile Industry covered three investment thresholds (₹15 crore, ₹30 crore and ₹45 crore) under a ₹4,200 crore scheme. We look forward to the upgrade of the scheme to further support the sector.
A fresh look at the subsidies and tax benefits for cotton manufacturers can help reduce the high prices for the raw material. Stabilising the price of cotton is crucial. It has fluctuated to reach even the high price of over 1 Lakh per candy recently. Assisting this, would also be a reduction on Cotton Duty.
We are hoping for a restructuring of duty which will add a measure of confidence and allow the Indian home textile makers to invest more and confidently compete within the global arena as well. Inverted duty structures have led to high pricing and the inability to trade at world markets in the past. Some focus on reducing duties and taxation will give the sector a chance to create price appeal abroad.
Free trade agreements with Australia, United Kingdom and the European Union will offer respite as well, making Indian home textile exports a more viable option for foreign markets.
So far, it looks as though we are about to see a fantastic budget for the sector. Finance Minister Nirmala Sitharaman meeting with the leaders of the industry indicates an allocation of more than the previous ₹12,382.14 crores for the textile sector from last year.
The leap should not leave out schemes that were cut from the last budget. Some schemes we hope to see benefit from the soon to be announced Budget include:
- The Powerloom Promotion Scheme.
- Price Support Scheme
- Textile Cluster Development Scheme
- Northeast Textiles Promotion Scheme
- The PM Mega Integrated Textile Region and Apparel (PM MITRA) Scheme
- The Raw Material Supply Scheme
As the second largest employer within India, we urge the Government to consider lower taxes and more subsidies to help alleviate unemployment within the country.
Attracting private equity into the sector is a must and to do this the industry must be granted leniency and hope in the new fiscal year.
With due benefits and focused, easy-to-implement schemes, the Indian Home Apparel Sector stands to shine across the globe. All it requires is for the Budget 2023-2024 to support our excellence in design, manufacturing and marketing.
We look forward to a bold budget that helps us give Indian Home Apparel and Textiles a well-deserved place on the world stage.