Textiles sector sees 28% increased allocation in budget 2024

The budget proposed reducing the basic customs duty on real down-filling material derived from ducks or geese to enhance the competitiveness of Indian leather and textile exports.

The budget allocation for the textiles sector has been increased by Rs 9.74 billion to Rs 44.17 billion in the Union Budget for 2024-25.

Union Finance Minister Nirmala Sitharaman presented the budget on Tuesday, which included a rise in the allocation for research and capacity building in the textiles sector from Rs 3.80 billion to Rs 6.86 billion.

Additionally, the budget proposed reducing the basic customs duty on real down-filling material derived from ducks or geese to enhance the competitiveness of Indian leather and textile exports. The National Technical Textiles Mission’s allocation saw a significant increase of 120.59 per cent, reaching Rs 3.75 billion compared to Rs 1.75 billion in 2023-24.

Technical textiles, which are designed for performance and functionality, are used in various sectors including construction, agriculture, aerospace, automotive, healthcare, protective gear, and home care. Unlike traditional textiles, which prioritise aesthetics, technical textiles offer superior performance. They are made from both natural and synthetic fibres such as Nomex, Kevlar, Spandex, and Twaron. Currently, India exports technical textiles, including medical apparel, worth about $ 2.5 billion and aims to increase this to $ 10 billion in the next five years.

The National Handicraft Development Programme saw a 38 per cent increase in its allocation, rising from Rs 1.71 billion to Rs 2.36 billion. The increased funding is expected to support various initiatives aimed at enhancing artisans’ skills, improving their market access, and fostering innovation in traditional handicrafts. The budget allocation for silk promotion increased from Rs 8.75 billion to Rs 9 billion. India, being the world’s second-largest producer of silk, employs approximately 9.2 million people in its sericulture industry, which is located in rural and semi-urban areas. However, due to high domestic demand, India also imports silk from several nations. The centrally sponsored schemes for promoting the usage of geotextiles in the North-East, PM-MITRA, protection of handlooms, and raw material supply received an allocation boost of 45.6 per cent, reaching Rs 38.66 billion from Rs 26.54 billion in 2023-24.