The current allocation for the textiles ministry is Rs 44.17 billion.
As India awaits the first full-year Budget under the Narendra Modi 3.0 government, which is expected to be presented in February, there are high expectations for significant reforms across various sectors. Finance Minister Nirmala Sitharaman is anticipated to deliver her eighth Budget, including the Interim Budget of 2024.
The upcoming Union Budget will focus on areas such as textiles and garment exports, with an anticipated increase of up to 15 per cent in allocations. The current allocation for the textiles ministry is Rs 44.17 billion.
The government is considering reducing duties on several types of yarn, including polyester and viscose special fibre, according to sources. Additionally, discussions are underway for another Production-Linked Incentive (PLI) scheme for the textiles sector, which could resemble the existing one. Under this scheme, the central government offers various tax incentives and concessions to businesses opting to manufacture locally.
In the July Budget, the Finance Minister proposed cutting the basic customs duty on real down filling material from duck or goose, aiming to enhance the competitiveness of exports in the leather and textile sectors. The government also expanded the list of exempted goods used in the manufacturing of leather and textile garments, footwear, and other leather items for export. Furthermore, the customs duty on methylene diphenyl diisocyanate (MDI) for spandex yarn production was reduced from 7.5 per cent to 5 per cent, subject to certain conditions. The export duty structure on raw hides, skins, and leather was also simplified and rationalized, as stated in an official announcement.
The textile sector in India is a significant employer, with an estimated 40.5 million people working in the industry. From April to November, the country’s textile and garment exports grew by over 7 per cent, reaching more than $23 billion year-on-year, a sharp increase compared to the 2 per cent growth in overall goods exports.
Typically, the Finance Minister presents the Budget in Parliament on the first day of February.