Although no significant benefit or Scheme has been announced for the Textile Industry as such, I see a huge benefit for the Industry from two angles:
On the Production side, the measures proposed for MSMEs, especially the Micro Sector, will certainly provide a boost to this Sector, especially the increase of various upper limits – though details are still not known;
Launch of the Cotton Mission could be a big step; Measures to improve competitiveness of Export Sector, Domestic Manufacturing Capacities, and Ease of Doing Business will all help give an impetus to Manufacturing; Lowering of Basic Customs Duties on certain Textile Machineries will also provide an impetus.
On the Consumption side, the lowering of Income Tax at various levels will hopefully provide a huge increase in disposable income, increasing consumption; Various changes in the TDS and TCS limits should also give an impetus to Consumption.
In conclusion, a big Thumbs Up to the Budget 25-26, provided of course there are no twists in the fine print!
Having said this, I just hope that the advantages of the Budget are not nullified with increase in GST rates – especially in the Textile and Apparel Sector.
The opinion is presented by Santosh Katariya, President, Clothing Manufacturers Association of IndiaÂ