Rajeev Kumar, New Delhi. The government may focus in the upcoming budget on reducing the cost of the Indian textile industry, which directly employs 4.5 crore people in the country. In the budget to be presented on February 1 for the financial year 2022-23, the Finance Minister can make an announcement in this direction so that Indian products can easily compete with the products of other countries in the world market. According to sources, the textile industry can be encouraged in two ways in the upcoming budget.
The first approach would be to reduce the cost of raw materials and the second major measure would be to reduce the cost of the machineries associated with the manufacturing. Construction of seven textile parks along with linking of textiles with Production Linked Incentive (PLI) was announced in the budget for the current financial year 2021-22 and work in this direction has also started in the current financial year. Therefore, there is no possibility of announcement of a new park or cluster regarding textiles in the upcoming budget. Now the way the government is serious about the export of textiles and during the trade agreement with countries like US, UK, UAE, Australia, the government is emphasizing the export of textile items in those countries, it is clear that The cost of textiles can be reduced in the budget.
According to sources, first of all, the 10 percent import duty on cotton can be reduced or it can be completely abolished. Never before had duty been imposed on the import of cotton and garment manufacturers used to import cotton when required. But in the last one year, due to decrease in production and increase in exports, there has been a shortage of cotton in the domestic market and the price of cotton has increased by more than 70 percent, which has started showing the cost of fabric and garment manufacturing.
Textiles include cotton, yarn, fabrics and garments all, but with increasing exports of garments, maximum employment will be created as garments are finished products and many people are required to make garments. According to sources, the export of yarn can also be curbed and a minimum export price can be fixed for this. Apparel Export Promotion Council (AEPC) official and Garment Exporter Lalit Thukral says that due to increase in export of cotton or yarn, our raw material is going out and the cost of our finished goods is increasing which is affecting our exports and domestic demand. Even at the level, people will have to buy expensive clothes.
In the budget of the coming financial year, to increase the subsidy related to machine purchase, the allocation under the Revised Technology Upgradation Fund (TUF) can be increased so that the dues of the manufacturers who have purchased the machine can be paid and new manufacturers can be given may also be encouraged. In the current financial year, an allocation of Rs 700 crore was made for this item. According to sources, this fund can be increased and it has also been recommended by the Ministry of Textiles. According to sources, the funds for skill development in the textile sector can be increased. 100 crore was allocated for skill development in the textile sector in the current financial year. Was more. India’s textile market is currently worth $100 billion, which will cross $200 billion in the next five years.