India Budget: FM increases budget 28% for textile sector schemes

The government proposed ₹4,373 crore for revenue and 43.65 crore for capital expenditure totalling ₹4,417.03 crore for various scheme and administrative expenditure. In comparison, as per revised budget of 2023-24, the government had earmarked ₹3,424.53 crore for revenue and ₹18.56 crore for capital expenditure, totalling ₹3,443.09 crore.

Under the Central scheme, Sitharaman announced ₹600 crore for the procurement of cotton by Cotton Corporation of India (CCI) under price support scheme. The government did not allocate any fund for the last two fiscal years as cotton prices remained above the minimum support price (MSP). However, cotton prices are currently hovering near to MSP or below the benchmark, hence CCI will have to purchase cotton in substantial quantities during the coming marketing season beginning October 1.

FM has proposed to allocate ₹635 for Amended Technology Upgradation Fund Scheme (ATUFS) for the current fiscal. Last year, there was allotment of ₹675 crore. It is understood that allocated fund will be utilised to clear pending applications under the scheme which was discontinued earlier.

The government has doubled budget allocation to ₹375 crore for National Technical Textiles Mission (NTTM) from ₹170 crore of last fiscal (revised budget). However, ₹450 crore were allocated for the programme in the last fiscal (budget allocation). Under the head of Research and Capacity building, ₹45 crore were allocated for current fiscal for Production Linked Incentive (PLI) scheme for Textile. Earlier, the government had allocated ₹5 crore for the scheme. The allocation is increased to ₹166 crore from Integrated Scheme for Skill Development from ₹115 crore of last fiscal (Revised allocation). Funds for Textile Cluster Development Scheme increased to ₹100 crore from ₹70 crore. Total allocation for Research and Capacity Building increased to ₹686 crore from ₹380.50 crore. But there is no allocation for R&D in textile for the current fiscal.

Finance Minister proposed to increase funding for PM MITRA to ₹300 crore from ₹52.30 crore of last fiscal. FM had initially announced ₹200 crore for the ambitious scheme, but it was lowered in the revised budget. The allocation for Raw material Supply scheme also increased to ₹172.17 crore from ₹160 crore of last fiscal. The allocation for National Institute for Fashion Technology (NIFT) reduced to 98.67 crore from ₹103.13 crore of the last fiscal.

Fibre2Fashion News Desk (KUL)