TEA terms Union Budget 2021-22 as 'pragmatic'

Union minister of finance and corporate affairs Nirmala Sitharaman presented the Budget in Parliament today.

TEA president Raja M Shanmugham welcomed the fund allocation to roads and highways infrastructure facilities, specifically to Tamil Nadu State. In her Budget speech, Sitharaman proposed 3,500 km of National Highway works in the state of Tamil Nadu at an investment of ₹1.03 lakh crore. She also announced the Chennai-Salem corridor: a 277 km expressway will be awarded, and construction would start in 2021-22.

Welcoming the launching of much talked Mega Investment Textiles Parks Scheme and establishing 7 textiles parks in the country, Shanmugham said this will enable to create global champions in exports and was hopeful that Tiruppur exporters will opt to setup their units in these parks.

Shanmugham thanked the finance minister for allocation of ₹700 crore for Amended Technology Upgradation Scheme (ATUFs) against ₹545 crore in last Budget, which will help to clear the pending capital subsidy. He appreciated the allocation of ₹30 crore for Export Promotion Studies against ₹5 crore in last Budget, a requirement to the industry to know the export potential available for specified products in the unexplored markets. He was also happy to note that allocation of ₹100 crore for Integrated Scheme for Skill Development, a need of the hour for the textiles industry.

On rationalisation of duties on raw material to man-made textiles, Shanmugham said the reduction of Basic Customs Duty (BCD) on nylon chips, nylon fibre and yarn, caprolactam to 5 per cent will help for the promotion of textiles industry and exports.

He lauded the allocation of ₹50,000 crore over five years for National Research Foundation (NRF) to strengthen eco-system of the country and was hopeful that Tiruppur would also benefit out of this allocation.

In its pre-Budget memorandum to the finance minister, TEA had sought support for migrant workers. Shanmugham thanked the minister for allowing a new tax exemption for the notified Affordable Rental Housing Projects.

The proposal to allow women workers in all categories in the night shifts with adequate protection, and reduction of compliance burden on employers with single registration and licensing, and online returns, are also welcome steps, TEA said in a press release.

On the proposal to reduce the time limit for reopening of assessment for income tax proceedings from the present 6 years to 3 years, TEA said this help taxpayers to concentrate in their mainstream business.

Fibre2Fashion News Desk (RKS)