Budget 23-24: Indian textiles' smiles on provisions, duty rise a worry

T Rajkumar, chairman, Confederation of Indian Textile Industry (CITI) termed the Budget as pragmatic and futuristic. He thanked the government for carrying out wide range of reforms and sound policies implemented over the years for the consistent growth of the Indian economy and the textile sector. CITI chairman acknowledged the focused approach for enhancing the productivity of Extra-Long Staple (ELS) cotton. He stated that five new HS Codes for further classification of cotton as per staple length will help in calibrating policy support for the segments which are import dependent or need further incentivisation. The industry also welcomes the higher budgetary allocations for schemes promoting capacity building and investments like National Technical Textiles Mission (NTTM), PM MITRA, and Textile Development cluster scheme. However, the industry is concerned to note the increase in import duty of textile machinery to 7.5 per cent. It will impact new investments planned in the sector.

Ravi Sam, chairman, The Southern India Mills’ Association (SIMA) has appreciated the government for giving thrust for inclusive growth, infrastructure and investment for green growth and skill development. SIMA chairman thanked the government for considering the proposal of SIMA for ELS cotton. He said that after introduction of Bt technology only for Long Staple cotton, the industry started facing shortage of ELS cotton. He added that the industry’s requirement of ELS cotton is around 20 lakh bales while the country produces only 5 lakh bales and heavily depends on imports of superior quality ELS cotton. Ravi Sam appreciated higher allocation of funds for textile related projects and programmes and new HS codes for cotton based on length.

KM Subramanian, president of Tiruppur Exporters’ Association (TEA) welcomed the growth oriented and people centric Budget. He thanked the government for increase in Budget allocation for textile projects and schemes. He was hopeful that the increased allocation would help to clear the ATUFS pending claims, a major requirement of textile industry. Special focus on ELS cotton will help to increase manufacturing of value-added garments and also to reduce the import of ELS cotton, he added.

Fibre2Fashion News Desk (KUL)