The allocation for the textile sector has been hiked from Rs 3342 crore in the revised estimate of FY25 to Rs 5252 crore
Chennai: While announcing the Cotton Productivity Mission, the Budget has increased the allocation for the textile sector by 57 per cent.
The allocation for the textile sector has been hiked from Rs 3342 crore in the revised estimate of FY25 to Rs 5252 crore. The allocations of Advanced Technology Upgradation Fund and Production Linked Incentive are the schemes that mainly witnessed higher allocations, said Sanjay K Jain, Chairman, ICC National Textiles Committee.
Further, the Budget announced ‘Mission for Cotton Productivity’ – a five-year mission to facilitate improvements in productivity and sustainability of cotton farming, and promote extra-long staple cotton varieties. The country predominantly imports this variety of cotton. The improvement in productivity will also check the rise in cotton prices. Science and technology support will be provided to farmers under the mission. Currently, India has no surplus in cotton due to low yield of 450 kg per hectare against global average of 800 kg.
The 20 per cent or Rs 115/kg import duty on all knitted fabrics will check the shipping of undervalued fabric into the country. Import duty exemption of shuttle-less looms too is a positive for the industry. Further, higher consumption due to income tax exemption will drive textile sales and MSME incentives will promote textile units.
