India Budget 23-24: FM raises fund for textiles 22.6% to ₹4,389 crore

02 Feb '23

2 min read

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When India’s finance minister Nirmala Sitharaman was delivering her speech on Budget 2023-24, she did not give much prominence to the textile sector giving an impression that industry expectations were not satisfied. However, study reveals that fund allocation to the textile sector is increased by 22.6 per cent to ₹4,389.34 crore for next fiscal.

The Confederation of Indian Textile Industry (CITI) has conducted a study on fund allocations for the sector in Union Budget 2023-24. It said that the minister has raised allocations for ATUFS by 38.5 per cent to ₹900 crore. Last year, the government had given allocation of ₹650 crore. There was no provision for cotton procurement under Price Support Scheme because market prices of cotton are hovering higher than the Minimum Support Price (MSP). Last year, it had allocated ₹780.71 crore for the purpose. The allocation for National Handloom Development Programme is increased by 28.2 per cent to ₹200 crore. National Handicraft Development Programme received 25.9 per cent more fund and is now increased to ₹278.33 crore.

The government has allocated ₹27.11 crore (80.7 per cent increase) for Integrated Wool Development Programme, ₹917.77 crore (4.9 per cent up) for Development of Silk Textiles and ₹142 crore (128.3 per cent) for Development of Jute industries. There was no provision for Power loom Promotion Scheme for next year, similar to last year.

Under textile infrastructure, the allocation for Integrated Processing Development Scheme increased by 92.3 per cent to ₹60 crore. There was no allocation for Scheme for Integrated Textiles Parks (SITP) and Assistance to Textile Committee. Thus, the total budget for textile infrastructure decreased by 34.1 per dent to ₹60 crore.

Budget for research and capacity building increased by 271.4 per cent to ₹711.56 crore. Under the budget, Integrated Scheme for Skill Development received ₹115 crore (360 per cent increase), National Technical Textile Mission ₹450 crore (1,116.2 per cent increase), PLI scheme ₹5 crore (33.3 per cent decrease), Textile Cluster Development Scheme ₹141.54 crore (60.8 per cent increase) and other research and capacity building schemes ₹0.02 crore (99.9 per cent decrease). North East Textiles Promotion scheme did not get any allocation. However, PM MITRA received budget of ₹200 crore (5,614.3 per cent increase), raw material supply scheme ₹160 crore (23.1 per cent increase) and Scheme for Protection of the Handlooms and Implementation of the Handlooms (Reservation of Articles for Production) Act, 1985, ₹7 crore (40 per cent increase).

Fibre2Fashion News Desk (KUL)

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