Traders are hoping that this year’s central budget will solve the problems faced by the textile sector in the country. These are the main requirements
First Published Jan 19, 2023, 5:00 PM IST
MrThe textile sector is one of the worst affected by the Covid-19 pandemic. As the textile sector recovered from the pandemic and began to recover production and exports, the slowdown in developed markets due to the Russia-Ukraine war and high inflation hit the sector again.
Issues and concerns facing the textiles sector
- Exports slowed as global demand slowed
- Domestic demand is also sluggish amid the recession
- Cotton shortage
Looking at the government support to the textiles sector, there is a Rs 10,683 crore Production Linked Incentive Scheme. The government has set an export target of $100 billion by 2030. There is also a Mitra scheme which supports textiles
Major demands from the budget
- Incentive Scheme for Textile Value Chain
- Cotton Price Stabilization Fund Scheme to boost exports
- Replace Technology Upgradation Fund Scheme with PLI type plan
- Submit claims for 40,000 pending cases
Tax Prospects of Textiles Sector
- Remove the 11 percent import duty on cotton and cotton waste
- Maintain 5 percent import duty on all types of textile machinery
- Increase basic customs duty on import of MMF yarn from 5 percent to 10 percent.
- Restore duty free import facility
- Protect cotton yarn exports under the 3 percent interest parity scheme
Last Updated Jan 19, 2023, 5:00 PM IST
Download App:
