Indian Finance Minister Nirmala Sitharaman has given a boost to the textile sector in Budget 2024, increasing the allotment by 28 percent to ₹4,417.03 crore for 2024-25, proposing substantial addition to the budget for cotton procurement, and few other schemes.
The allocation for the National Technical Textiles Mission jumped 120.59% to ₹375 crore from ₹175 crore in 2023-24. Technical textiles are special textile products designed mainly for their performance and functionality. They are used in various sectors, such as construction, agriculture, aerospace, automotive, healthcare, protective gear, and home care.
Unlike traditional textiles, which focus on looks, technical textiles offer superior performance. They are made from both natural and synthetic fibres such as Nomex, Kevlar, Spandex and Twaron.
The National Handicraft Development Programme has seen a 38% jump in its allocation to ₹236 crore from ₹171 crore. The increased funding is expected to support various initiatives aimed at enhancing artisans’ skills, improving their market access, and fostering innovation in traditional handicrafts.
However, the allocation for the Amended Technology Upgradation Fund Scheme (ATUFS) has been reduced to ₹635 crore from last year’s allotment of ₹675 crore.
Aimed at creating a modern and vibrant industry, the Technology Upgradation Fund Scheme (TUFS) was introduced in 1999. The Amended Technology Upgradation Fund Scheme (ATUFS) was introduced in January 2016.
This credit-linked scheme is implemented through the notified lending agencies from reimbursing subsidy claims on eligible investments.
Over the years, this scheme has evolved with different names like the Modified Technology Upgradation Fund Scheme (MTUFS), Restructured Technology Upgradation Fund Scheme (RTUFS) as well as the Revised Restructured Technology Upgradation Fund Scheme (RRTUFS).
The scheme is aimed at promoting ease of doing business in the country, besides achieving the vision of generating employment and promoting exports via the Make in India initiative with “zero effect and zero defect” in manufacturing.
Further, it looks forward to facilitating the augmenting of investment, productivity and employment in the textile industry. Also, it indirectly promotes investment in textile machinery manufacturing. The scheme encourages better quality in the processing industry as well as checking the need for the import of fabrics.
In March last year, the then minister informed the Parliament that the allocation of the textiles sector in Budget 2023 stood at ₹4,389.34 crore, which was significantly higher compared to the revised estimates of FY 2022, which was ₹3,579.61 crore.
