According to the Union Budget presented in India, of the total allocation of ₹12,382 crores for the textile sector for next financial year, ₹133.83 crore is for Textile Cluster Development Scheme, ₹100 crores for National Technical Textiles Mission, and ₹15 crores each for PM Mega Integrated Textile Region and Apparel parks scheme and the Production Linked Incentive Scheme.
The noticeable increase is cotton procurement by Cotton Corporation of India under the price support scheme.
The Cotton Corporation will see an allocation of ₹9,243 crores for the next financial year against ₹8,440 crores in the revised budget allocation for the current year. This is for the committed liability of the government to the Corporation, said an official.
On duties levied, with no changes in the 10% import duty on cotton, the industry’s expectation of measures to control cotton prices, which is the raw material, was not met. Trimmings, embellishments, labels, and the like that attract 5% import duty will now be available as duty-free imports for textiles and leather garments exporters. However, it looks like made-ups and home textiles have been excluded from the duty-free import of trimmings and others. At present, machinery such as knitting and weaving machines is included in the list of machines having Concessional Custom Duty of 5%.
All these machines will attract a 7.5% import duty.
Nirmala Sitharaman, Finance Minister, said, “This comprehensive review will simplify the customs rates and tariff structure particular for sectors like chemicals, textiles, and metals, and minimize disputes.” Hailing the 2022 Union Budget as “people-friendly” and “progressive”, Prime Minister Narendra Modi said the Budget brings new energy and strength to India’s development trajectory, especially when the country is fighting the pandemic. “This Budget brings more infrastructure, more investment, more growth, and more jobs,” he said. The Prime Minister said that the youth of India see this Budget as one that will give wings to their ambitions and added that the emphasis on futuristic technologies in all spheres is noteworthy and will benefit a cross-section of our citizens.
