Akhil Jain: An increase in Customs duty rates on certain knitted fabrics poses a challenge  

India’s retail apparel and fashion industry was looking forward to the Union Budget with a lot of anticipation and optimism. The Budget aims to accelerate economic growth through four key drivers: Agriculture, MSMEs, Investment, and Exports. This ambitious plan is bolstered by comprehensive structural reforms in taxation, finance, and business regulations, which are designed to create a conducive environment for sustainable development.

One of the notable highlights is the introduction of revamped personal income tax slabs. This initiative is set to enhance disposable income for the public, thereby stimulating consumer spending and boosting economic activity. The synergistic impact of these measures is anticipated to provide a significant boost to the retail apparel industry. However, an increase in Customs duty rates on certain knitted fabrics poses a challenge. This could escalate raw material costs and exert pressure on profitability unless the viability of sourcing domestically available fabrics is effectively realised.

The opinion is presented by Akhil Jain, Executive Director, Jain Amar (Madame)