Ludhiana, 24th July 2024
With a 28% rise in the budget allotted for the sector in the fiscal year 2024–2025, India’s textile industry is expected to flourish. The substantial increase in investment is anticipated to stimulate innovation, improve productivity, and open up new avenues for the Indian textile sector. The government’s commitment is demonstrated by the increasing investment. to fostering the expansion and advancement of the textile industry, which is vital to the nation’s economy.
The texile industry is well-positioned to take advantage of new opportunities in the global market and rising trends thanks to this increased budget allocation.
The Northern India Textile Mills Association (NITMA) President, Shri. Sanjay Garg, stressed that the Union Budget’s main priority areas include MSMEs, skill development, and employment. He emphasized that the labor-intensive Texas economy will be tremendously benefited by the initiatives made in these areas.
The introduction of the Credit Guarantee Scheme for MSMEs, which covers up to Rs. 100 crores in potential loan amounts, was applauded by Shri Garg. The scheme provides term loans for the acquisition of machinery and equipment without requiring collateral or a third-party guarantee. The expansion of the credit guarantee program a ceiling is anticipated to mimic investment in the Texels industry.
The required assistance for the technology sector will also be provided via the budget allocations for cooperative procurement, the Amended Technology Upgradation Fund Scheme for the National Technical Textiles Mission, and increased money for PM MITRA.
Additionally, he expressed gratitude for the funds for RoSCTL and RoDTEP, which experienced an increase in allocation over 2023–2024. This increase is timely because there has been a decrease in textile exports.
Moreover, it is anticipated that the emphasis on skill development would positively affect the textile business. It is commendable that an incentive of ₹3,000 per month be introduced for each employee. Furthermore, the reduction of the tariff on raw spandex yarn from 7.5% to 5% would enhance the competitiveness of textiles on a global scale. producers who make use of this substance.
To help the industry expand and develop and get to the next level of success, all of these actions are essential.
In general, the increasing budget allocations are a positive development for the textile industry in India. The precise actions taken and how well the sector takes use of this chance will determine the impact that is really felt.