The finance minister expanded the list of fully exempted textile machinery by including two types of looms to boost domestic production of technical textile products.
Nirmala Sitharaman, Finance Minister, announced an allocation of Rs 52.72 billion for the Ministry of Textiles. Of this, Rs 6.35 billion has been earmarked for upgrading technology in the textile sector under the Amended Technology Upgradation Fund Scheme (ATUFS). This allocation remains consistent with last year’s Budget estimate of Rs 6.35 billion and marks a nearly 48 per cent rise from the revised estimate of Rs 3.90 billion.
Additionally, the finance minister expanded the list of fully exempted textile machinery by including two types of looms to boost domestic production of technical textile products. The Technology Upgradation Fund Scheme (TUFS) was first introduced in 1999 to modernize and strengthen the industry. Over time, it has undergone several modifications, including the Modified Technology Upgradation Fund Scheme (MTUFS), Restructured Technology Upgradation Fund Scheme (RTUFS), and the Revised Restructured Technology Upgradation Fund Scheme (RRTUFS), before evolving into ATUFS in January 2016. According to the textile ministry’s 2023-24 annual report, as of March 31, 2022, a total of 14,389 UIDs had been automated and issued under ATUFS, with an estimated project cost of Rs 691.60 billion.
Objectives of ATUFS
The scheme is designed to enhance ease of doing business while supporting the broader goals of employment generation and export promotion through the Make in India initiative, ensuring “zero effect and zero defect” in manufacturing.
It seeks to boost investment, productivity, and employment in the textile industry while also encouraging growth in domestic textile machinery manufacturing. Additionally, the scheme promotes higher quality standards in textile processing and aims to reduce dependence on fabric imports.
By supporting the garment and apparel industry, ATUFS aims to drive exports and job creation, particularly benefiting women, while increasing India’s presence in the global textile market.
News source: CNBC TV18