India's Textile Sector Set For Major Boost With 28% Budget Increase
Date
7/26/2024 2:33:11 PM
(MENAFN- KNN India)
New Delhi, Jul 26 (KNN)
In a significant move that signals robust growth for India's textile industry, the government has announced a 28 per cent increase in budget allocation for the sector in the 2024-25 fiscal year.
This substantial rise in funding is expected to catalyze innovation, enhance productivity, and create new opportunities within the industry, according to Northern India Textiles Mills Association (NITMA) President Sanjay Garg.
Speaking on Wednesday, Garg highlighted the government's commitment to bolstering the textile sector, which plays a pivotal role in India's economy. "This increased investment demonstrates the administration's recognition of the textile industry's importance and its potential for growth," Garg stated.
The budget boost comes at a crucial time for the Indian textile sector, which has been positioning itself to capitalise on emerging global market trends. With this additional funding, the industry is better equipped to enhance its competitiveness on the international stage.
Garg emphasised that the Union Budget's focus on employment, skilling, and support for Micro, Small, and Medium Enterprises (MSMEs) aligns well with the needs of the labor-intensive textile industry.
He particularly lauded the introduction of the Credit Guarantee Scheme for MSMEs, which offers term loans for machinery and equipment purchases without collateral or third-party guarantees, covering amounts up to Rs 100 crore and potentially beyond.
"The increase in the credit guarantee scheme limit is poised to stimulate much-needed investment in the textile sector," Garg explained. He also noted that budget allocations for cotton procurement, the Amended Technology Upgradation Fund Scheme for the National Technical Textiles Mission, and enhanced funding for PM MITRA (Mega Integrated Textile Region and Apparel Parks) will provide crucial support to the industry.
This comprehensive approach to supporting the textile sector through various initiatives reflects a strategic move by the government to strengthen one of India's core industries.
As the sector prepares to leverage this increased funding, it stands on the brink of a transformative period that could redefine its role in both the domestic and global economies.
(KNN Bureau)
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