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Friday, February 23, 2024

Slight hike in Indian textile ministry budget in fiscal 2024-25

The Indian textiles ministry may witness a slight hike of 2.5 percent in its budget allocation for fiscal 2024-25, which will be presented on February 1 as against INR 4,389 crore allocated in ongoing fiscal.

“The marginal hike could present challenges for the ministry in utilising its funds efficiently, although the government has plans to expand exports from the sector,” media reports quoted sources as saying.

In fiscal 2021-22, the Indian textiles ministry was allocated INR 11,059.81 crore, which was further increased by over 10 percent to INR 12,382 crore in fiscal 2022-23.

However, the ministry faced a 71 percent cut in its revised budget estimate, reducing the outlay to INR 3,579 crore in fiscal 2022-23, but was again increased in fiscal 2023-24.However, the sources added that the marginal rise in the allocation is not likely to hinder the progress of the Pradhan Mantri Mega Integrated Textile Region and Apparel (PM Mitra) programme, which has an outlay of INR 4,445 crore over five years, ending in 2027.

With a plan to set up seven PM MITRA Parks and attract INR 70,000 crore investments in the next five years, the government has plans to position India as a destination for textile sourcing, and also attract foreign direct investment (FDI).

The textile and garment industry contribute significantly to the Indian economy and account for around 2.3 percent India’s GDP, 13 percent of industrial production, and 12 percent of export revenue.

The Indian textile ministry also aims to expand India’s market share which is at 4 percent currently in the worldwide textiles and clothing trade.

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