Mumbai: The Textile industry had welcomed this move as they believe this decision is an encouragement for start-up’s to make investment in textile and apparel sector. The other benefits extended such as additional allocation to the banks for NPA accounts, cashless transaction, labour reform, relaxation of FDI norms by abolishing Foreign Investment Promotion Board (FIPB) would also benefit the textile and apparel industry.
Tirupur Exporters’ Association (TEA), lauded the enhancement of allocation of fund to Mudra Bank from Rs. 1,36,000 crore to Rs. 2,44,000 crore which will encourage the new entrepreneurs in the region to investments in sectors such as knitwear.
Federation of Indian Export Organizations (FIEO), said the investment of close to Rs. 4 lakh crore in the infrastructure encompassing road, railways, aviation would not only improve competitiveness of manufacturing and exports sector but would reduce the logistics cost of exports as well.
Southern India Mills’ Association (SIMA) had welcomed the Union Budget. The objective of Doubling farmers’ income, Housing for one crore rural Indians, Skilling of youth by establishing 100 India International Skill Centres, Development of Infrastructure to provide end-to-end solution by integrating road, rail and ship would greatly benefit the textile industry spread across the nation.
However, TEXPROCIL has some mixed opinions on this Budget. According to the TEXPROCIL, overall the Budget is positive, wide ranging and inclusive. They, however, appealed the Government to restore some of the incentives relating to interest subvention for merchant exporters and cotton yarn and MEIS benefit for cotton yarns.
Mafatlal Industries also had welcome the budget, stated that the garment sector will have a boost on long-term basis due to 35% increase in government expenditures in rural infrastructure development; rural investment and rural economic improvement will boost demand for textiles and garments. The SSI & medium scale textiles and garment manufacturing companies will be benefiting from this. Overall it is an encouraging budget with a long-term vision.