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India Budget 2022-23: Allocation for textile sector up 8.1%

01 Feb '22

2 min read

The Union Minister for Finance and Corporate Affairs Nirmala Sitharaman arriving at Parliament House to present the Union Budget 2022-23, in New Delhi on February 01, 2022. Pic: PIB

The allocation for the textile sector for year 2022-23 in the Union Budget presented today by finance minister Nirmala Sitharaman stands at about ₹12,382.14 crore, which is about 8.1 per cent higher than the revised budget allocation of 2021-22 which stands at about ₹11,449.32 crore. However, no funds are allocated towards Powerloom Promotion Scheme.

Budget allocation during 2021-22 initially was ₹3,631.64 crore, but it was later revised to ₹11,449.32 crore mainly due to increased allocation for procurement of cotton by Cotton Corporation of India (CCI) under ‘Price Support Scheme’ from ₹136 crore initially to ₹8,439.88 crore. For financial year 2022-23, the allocation is ₹9,243.09 crore, which is about 9.5 per cent higher than revised allocation of last year.

In the present Budget, the government has allocated about ₹133.83 crore for Textile Cluster Development Scheme, and hence the total budget allocation for Research and Capacity Building in textiles increased by 73.4 per cent to reach about ₹478.83 crore in 2022-23, as compared to revised budget allocation of ₹276.10 crore in 2021-22.

For 2022-23, the government has also omitted funds for North East Textiles Promotion Scheme, which was ₹49.94 crore last year.

The recently announced Production Linked Incentive (PLI) scheme and PM Mega Integrated Textile Region and Apparel (PM MITRA) scheme also saw an allocation of ₹15 crore each for 2022-23.

The government has also allocated ₹105 crore for the year 2022-23 towards Raw Material Supply Scheme, which has already been approved for implementation during period from 2021-22 to 2025-26.

Fibre2Fashion News Desk (KUL)

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