Delhi, July 23, 2024: Sh. Rakesh Mehra, Chairman of the Confederation of Indian Textile Industry (CITI), congratulated the Hon. Minister of Finance, Shri Nirmala Sitharaman, on her presentation of her 7th Finance Budget. He described the budget as progressive and addressed a number of important concerns for the expansion of the Indian economy generally.
To boost capacity, modernize, and remain cost-competitive, the textile and garment industries, however, required to take some drastic actions due to their stagnation. “Approximately 80% of the Indian textile industry is made up of MSME. The credit insurance programs unveiled today will offer the crucial encouragement for the expansion of a significant number of MSMEs in the textile and apparel industries their processes and introduce new ideas,” stated Shri Mehra.
He welcomed the establishment of e-Commerce centers and was pleased that e-commerce was acknowledged as a development driver for trade. More strong and sustainable industrial parks will also be made possible by the “plug and play” industrial parks, assistance in the establishment of working women’s hostels, etc. ecosystem.
The government’s move to loosen FDI regulations, along with its enhanced emphasis on skill development and the launch of the Employment Linked Incentive Scheme, would encourage fresh investment in the textile sector. Additionally, funding for energy projects, the shift to sustainable energy, and The government’s commitment to sustainable development is emphasized by energy audits. “We think that that a more resilient and sustainable industrial ecosystem will be made possible by these efforts, he stated. The numerous advantages of lowering income taxes will also boost buying power. of the public, which might result in increased domestic demand for the textile sector.
While the Hon’ble Minister underlined the need to increase domestic manufacturing’s competitiveness in her speech today, according to Shri Mehra, the downstream textile sector is suffering from a lack of raw materials, both cotton and man-made fibers at worldwide competitive rates, which has prevented the Indian textile sector from leveraging our distinct strength of presence along the value chain, which led to a rise in value imports. the time, new goods were added.
Furthermore, the sector will not have access to any investment incentives for modernization or development once the TUFS plan expires in March 2022. The industry has to expand up if it is to survive, since it has been rapidly falling behind its rivals mostly because of a lack of resources.Along with the With the exception of the increased PLI program grant of Rs 45 crore from Rs 5 crore, there are no significant a declaration to address the declining competitiveness of the sector, Mr. Mehra noted. The vast majority’s investment needs have not been met by the PLI plan. It will be necessary to revive capital subsidy programs in order to guarantee significant investments. More audacious measures will be required for “Viksit Bharat” to revive this industry that creates jobs. “We anticipate taking action to address these concerns,” he remarked.