CMAI Hails Budget Proposals For Boosting Textile Manufacturing And Consumer Spending
(MENAFN- KNN India)
New Delhi, Feb 1 (KNN) The 2025-26 Union Budget has been met with cautious optimism by the Clothing Manufacturers Association of India (CMAI), particularly in light of the lack of direct schemes or benefits for the textile industry.
However, CMAI believes there are notable positives that could stimulate growth for the sector from both the production and consumption sides.
On the production front, CMAI sees potential in the measures aimed at bolstering MSMEs, especially within the micro-sector.
While specifics remain unclear, the increase in upper limits for MSMEs is expected to provide a significant boost to smaller players in the textile industry.
The launch of the Cotton Mission is another key highlight, with the promise of improving cotton supply, potentially addressing a critical need for the industry.
Additionally, measures designed to enhance the competitiveness of the export sector, expand domestic manufacturing capacities, and ease business processes are anticipated to further strengthen the manufacturing base.
Another important step for the industry is the reduction in basic customs duties on certain textile machinery. CMAI believes this could provide a much-needed push for modernisation and efficiency in textile manufacturing.
On the consumption side, the lowering of income tax at various levels is expected to boost disposable income, which could drive greater consumption across the sector. Changes in TDS and TCS limits also stand to enhance overall consumer spending.
In conclusion, CMAI has given a thumbs-up to the budget, though with the caveat that the details in the fine print could have a significant impact.
The association also expressed concern about the potential for an increase in GST rates for the textile and apparel sector, which could dampen the positive effects of the budget.
(KNN Bureau)
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