India’s Textile Sector Gets 28% Budget Hike
India’s textile sector is poised for growth with a 28% increase in the Budget allocation for 2024-25, said Northern India Textiles Mills Association (NITMA) President Sanjay Garg. This significant boost in funding is expected to drive innovation, enhance productivity, and create new opportunities for the textile industry. The increased investment underscores the government’s commitment to supporting the sector, which plays a crucial role in the country’s economy.
With this increased Budget allocation, the textile sector is well-positioned to capitalize on emerging trends and opportunities in the global market. Garg emphasized that employment, skilling, and MSMEs are key focus areas of the Union Budget, with announcements in these areas poised to benefit the labor-intensive textile industry.
He commended the introduction of the Credit Guarantee Scheme for MSMEs, which includes provisions for term loans to purchase machinery and equipment without the need for collateral or third-party guarantees, with coverage up to Rs 100 crore, potentially even larger loan amounts. This increase in the credit guarantee scheme limit is anticipated to stimulate investment in the textile sector.
Additionally, Budget allocations for cotton procurement, the Amended Technology Upgradation Fund Scheme for the National Technical Textiles Mission, and enhanced funding for PM MITRA will provide essential support to the textile sector, he added.
