Presenting her seventh-consecutive Budget, Union Finance Minister, Nirmala Sitharaman, highlighted nine priority areas for comprehensive development and to generate 'ample opportunities' for all.
The nine priority areas included, productivity and resilience in agriculture; employment and skilling; improved human resources; social justice; manufacturing and services; urban development; energy security; infrastructure; innovation; research and development and next-generation reforms.
However, among the galaxy of schemes, reforms, allotments and developmental measures, the stakeholders in textile sector seem to have hit a cul-de-sac. This year, expectations were so high for something concrete and promising for the textile sector.
Gaurang Bhagat, President, Maskati Cloth Market Association in Ahmedabad had earlier said, "The government should get a new textile policy. Our demand is that the government should explain the new MSME payment rule to textile associations."
No major outlay for the sector surfaced in Tuesday's budgetary speech of the finance minister and some facile proposals included reduction in Basic Customs Duty (BCD) on real down filling material from duck or goose, additions to the list of exempted goods for manufacture of leather and textile garments, footwear and other leather articles for export, among others.
There is also a reduction in BCD, subject to conditions, on methylene diphenyl diisocyanate (MDI) for manufacture of spandex yarn from 7.5 to 5 per cent. Besides, there is a proposal to simplify and rationalize the export duty structure on raw hides, skins and leather.
With 11.4 per cent of India's overall exports, the textile and apparel sector in India is the world's sixth largest exporter. While the textile exports in Financial year 2022 was pegged at 44 billion USD, the government targetted a 600 billion USD by the year 2047, and the sector has been eagerly waiting to bag substantial proposals for the intended result. But that seems to have eluded Budget 2024-25.
Ratan Poddar, textile expert and Director of Shefall Textiles Mills Pvt. Ltd. reacting to the Budget said, that there has been no significant allotment visible for the textile industry, which is the biggest employment provider after agriculture. "We have to compete in terms of exports mostly with countries like China, Bangladesh, Vietnam, among others. Even Pakistan poses a tough competition in thick yarn. We don't get a level playing field. We are not able to match with the rate at which China procures yarn, employment or electricity," he added.
Now that there has been no visible response to the demand of MSME textile firms for reduction in compliance burden or sops for capacity building, Non-budgetary textile scheme like PM MITRA (PM Mega Integrated Textile Region and Apparel), which is expected to generate over 20 lakh employment opportunities, remains the sole relief for the sector. The scheme, inspired by Prime Minister Modi's vision towards building a self-reliant India, is aimed at ensuring India's strong global presence.
