Exclusive: Budget 2022 Expectations: Textile, EV sectors likely to see big bang announcements; slashing cotton import duty, priority lending for EVs among top demands

Textile and to auto sector are likely see some big announcements from Finance Minister Nirmala Sitharaman in her Union Budget 2022 announcements, Zee Business Special Correspondent Ambarish Pandey reported citing his top sources.  

Around 11 per cent import duty in textile, as requested by Textile Minister amid rising in cotton price may be removed, while electric vehicle could be put on priority lending to create growth cushion for both the sectors during Budget 2022, Pandey said in his report. 

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The Union Budget 2022-23 is scheduled to be presented by finance minister Nirmala Sitharaman on February 1 at at 11 am in the Parliament. 

In order to achieve its USD 5 trillion economy goal, and to meet the exports target for this fiscal, the government is also likely to announce some extra measures in production-linked incentive schemes, the sources said on the condition of anonymity. 

1 फरवरी को पेश होने वाले बजट में एक्सपोर्ट और टेक्सटाइल सेक्टर से जुड़े बड़े ऐलान संभव है।

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In December 2021, the government had approved the PLI scheme for textiles, with an approved outlay of Rs 10,683 crore for five years to promote production of MMF apparel, MMF fabrics and products of technical textiles. 

Besides, the government is also said to be putting a lot of emphasis on the EV segment to ensure that this sector picks up fast-paced growth, he added. This is done in the backdrop of government's flagship schemes Atmanirbhar Bharat and Make in India. 

In the priority lending, the government may urge the banks and financials to put the sector in priority lending bracket with easy tax and interest rates, the sources also tell Zee Business. 

It is also speculated that PLI schemes to be launched for the EV related industries such as batteries category and import duties on the raw materials such as lithium and cobalt be also removes, he said. 

Several analysts believe, the infrastructure is also going to get a boost in upcoming Budget and because of which sectors such as realty, cement, finance are key monitorables.