Textile Ministry’s budget allocation may experience slight increase

The ministry encountered a 71% reduction in its revised budget estimate, reducing the outlay to Rs 3,579 crore in 2022-23.

The textile ministry is expected to witness a marginal increase of 2.5% in its budget allocation for the fiscal year 2024-25. The ministry had been allocated Rs 4,389 crore for the current fiscal year.

The modest increase, in line with the government’s commitment to positioning India as a prominent global player in the textile industry, could pose challenges for the ministry in efficiently utilising its funds.

In the fiscal year 2021-22, the ministry received a budgetary allocation of Rs 11,059.81 crore, which was further augmented by over 10% to Rs 12,382 crore in 2022-23. However, the ministry encountered a 71% reduction in its revised budget estimate, reducing the outlay to Rs 3,579 crore in 2022-23.

The marginal rise in the allocation is not expected to impede the progress of the Pradhan Mantri Mega Integrated Textile Region and Apparel (PM Mitra) programme, which has a budget of Rs 4,445 crore over five years, concluding in 2027.

With plans to establish seven PM MITRA parks and attract Rs 70,000 crore in investment over the next five years, the government aims to position India as a prime destination for textile sourcing and investment, in addition to encouraging foreign direct investment (FDI).

Textiles and apparel play a significant role in India’s economy, contributing approximately 2.3% to the country’s GDP, 13% to industrial production, and 12% to export revenue. India holds a 4% share in global textiles and apparel trade.

The government has introduced several initiatives to promote private equity investments and boost job creation in the sector, including the Scheme for Integrated Textile Parks (SITP) and the Technology Upgradation Fund Scheme (TUFS).

Efforts to support the textile industry involve the addition of 43 new partners under the SAMARTH scheme for skill development, approval of research and development projects, and an investment of $7.4 million in this area, according to the second official.

The ministry has also implemented major schemes like the National Handloom Development Programme, Mill Gate Price Scheme/Yarn Supply Scheme, and Handloom Weavers’ Comprehensive Welfare Scheme.