Budget Expectations: Textiles ministry allocation likely to be increased up to 15%, say sources
As India awaits the Narendra Modi 3.0 governments first full-year Budget, due in February, expectations are soaring with hopes of reforms across sectors. Finance Minister Nirmala Sitharaman is set to present what could be her eighth Budget in a row, including the Interim Budget of 2024.
As India awaits the Narendra Modi 3.0 government's first full-year Budget, likely in February, expectations are soaring with hopes of major reforms across sectors. Finance Minister Nirmala Sitharaman is set to present what could be her eighth Budget in a row, including the Interim Budget of 2024.
The upcoming Union Budget is set to focus on areas such as textiles and garment exports, with an expected rise of up to 15 per cent in allocations, sources told Zee Business.
Currently, the allocation for the textiles ministry stands at Rs 4,417 crore.
The government is mulling reducing duties applicable to several types of yarn, including polyester and viscous special fibre, they said.
There is talk of another Production-linked Incentive scheme for the textiles sector, possibly similar to the existing one, according to sources.
Under this programme, the central government offers a slew of tax incentives and concessions to businesses choosing to manufacture locally.
In the July Budget, the Finance Minister proposed to cut the basic custom duty applicable to real down filling material from duck or goose, in a step aimed at enhancing the competitiveness of exports in the leather and textile sectors.
The government also added to the list of exempted goods for the manufacturing of leather and textile garments, footwear and other leather articles for export.
It reduced the customs duty on methylene diphenyl diisocyanate (MDI) for the manufacturing of spandex yarn from 7.5 to 5 per cent, subject to certain conditions.
Additionally, the export duty structure on raw hides, skins and leather was simplified and rationalised, according to an official statement.
The country's textile sector employs an estimated 4.5 crore people.
Between April and November, the country's textile and garment exports rose more than 7 per cent to over $23 billion on a year-on-yeara basis, sharply higher than growth of about 2 per cent overall goods exports.
Typically the Finance Minister unveils the Budget in Parliament on the first day of February.
With agency inputs
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