India's textile sector is set for substantial growth with a 28 per cent budget increase for fiscal year 2024-25. This significant boost underscores the government's commitment to enhancing innovation, productivity, and opportunities within the industry, which is crucial to the nation's economy.
Sanjay Garg, President of the Northern India Textiles Mills Association (NITMA), highlighted that the Union Budget focuses on employment, skilling, and MSMEs. Key measures include the Credit Guarantee Scheme for MSMEs, offering term loans for machinery and equipment without collateral up to Rs 100 crores. This is expected to stimulate investment and growth in the sector.
Increased allocations for cotton procurement, the Amended Technology Upgradation Fund Scheme, the National Technical Textiles Mission, and PM Mitra will further bolster the industry. The enhanced funding for RoDTEP and RoSCTL is timely, aiming to reverse the decline in textile exports.
The budget also introduces a Rs 3,000 monthly incentive per worker for skill development and reduces the duty on raw spandex yarn from 7.5 per cent to 5 per cent, improving the international competitiveness of textile manufacturers.
Overall, these measures are designed to propel the Indian textile sector to new heights. The actual impact will depend on effective implementation and the industry's ability to capitalize on these opportunities.
