Budget 2024: Centre mulls measures to support textile industry
What's the story
The upcoming Union Budget is expected to introduce several initiatives aimed at strengthening textile exports and enhancing the competitiveness of Indian products, as per CNBC-Awaaz. Key proposals include reducing or eliminating basic customs duty on imported organic cotton and long-staple cotton, both of which are essential for the apparel industry. Currently, both of these products are subject to a 5% basic customs duty along with an additional 5% duty.
Budget proposals
National Textile Fund and tax relief on the horizon
The budget may also propose an increase in the basic customs duty from 5% to 10% on imported man-made fiber spun yarn to discourage the influx of cheap imports. The Union Budget may also announce a National Textile Fund to support Micro, Small, and Medium Enterprises (MSMEs) in the textile sector. This fund would ensure easy availability of capital for technological upgrades and strategic investments, according to the report.
What's more?
NDA 3.0 aims for 'landmark work' in 100 days
Additionally, a proposal is being considered to offer capital subsidies for faster adoption of renewable energy within the textile industry. The report indicates that the NDA 3.0 government is enthusiastic about doing "landmark work" within the first 100 days, with potential policy initiatives benefiting the textile sector, which employs the second largest workforce after agriculture.