CITI Chairman Praises Forward-Thinking Budget, Urges More Support For Textile Industry
Date
7/24/2024 4:22:54 AM
(MENAFN- KNN India)
New Delhi, Jul 24 (KNN) Finance Minister Nirmala Sitharaman's seventh budget presentation has elicited a nuanced response from the textile sector, according to Rakesh Mehra, Chairmin, Confederation of Indian Textile industry (CITI).
Mehra commended the budget for its forward-thinking approach to overall economic growth. He highlighted the credit assurance schemes as potentially beneficial for the textile and garment MSMEs, which constitute approximately 80 per cent of the industry.
The budget's emphasis on e-commerce, including the announcement of e-commerce hubs, was positively received. Mehra also noted the potential benefits of 'plug and play' industrial parks and support for working women's hostels in fostering a more robust industrial ecosystem.
Additionally, the chairman praised initiatives aimed at skill development, the Employment Linked Incentive scheme, and the easing of FDI norms, viewing these as facilitators for new investments in the textile sector.
The budget's focus on clean energy transition and sustainability measures was also acknowledged.
However, Mehra expressed concerns about the industry's current challenges. He pointed out the lack of access to competitively priced raw materials, both cotton and man-made fibres, which has hampered the industry's ability to leverage its presence across the value chain and led to increased imports of value-added products.
The expiration of the Technology Upgradation Fund Scheme (TUFS) in March 2022 has left the industry without a significant investment incentivisation scheme for expansion or modernisation. Mehra emphasised the critical need for scaling up to maintain competitiveness against international rivals.
While the budget increased the allocation for the Production Linked Incentive (PLI) scheme from Rs 5 crore to Rs 45 crore, Mehra noted that this alone may not sufficiently address the industry's competitiveness issues.
He suggested that the revival of capital subsidy schemes could be necessary to stimulate large-scale investments.
In conclusion, Mehra indicated that achieving the goal of 'Viksit Bharat' may require more robust measures to revitalise the employment-generating textile sector. The industry anticipates further steps to address these ongoing challenges.
(KNN Bureau)
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