Budget 2024 and the Textile Sector: Analysis and Outlook
Amidst the anticipation surrounding the Interim Budget 2024, Finance Minister Nirmala Sitharaman took the podium on February 1, delivering her shortest-ever speech lasting 56 minutes. As stakeholders in the textile sector eagerly awaited announcements that would shape the future of their industry, the interim budget, while pragmatic, opened avenues for hope and optimism.
The textile and apparel industry had harbored hopes that the interim budget would unveil tax incentives and bolster textile infrastructure, thereby fortifying manufacturing capabilities and amplifying export potential. While these expectations weren't fully met, the budget did showcase positive strides that set the stage for future growth and development.
Notably, the increased allocation of approximately 27.60% for the Ministry of Textiles for the fiscal year 2024-25 compared to the previous year is indeed a commendable stride forward. This enhanced allocation encompasses various schemes such as PM MITRA Park, NITTM, A-TUFS, ISDS, RoTDEP, and RoSCTL, among others. Additionally, provision for the Cotton Corporation of India to execute MSP operations for cotton underscores a commitment to bolstering cotton farming communities.
The extension of the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for two years has been warmly received by the textile and apparel industry. The scheme's continuation is deemed essential for long-term trade planning, and the augmented allocation in the budget reflects a concerted effort towards sustaining this crucial initiative.
Moreover, measures aimed at incentivizing green power adoption, including bio-manufacturing and renewable energy sources like rooftop solar and offshore wind, signify a progressive stance towards reducing the industry's carbon footprint. Initiatives geared towards aligning with sustainability goals resonate deeply with Beekaylon's ethos of environmental stewardship.
Furthermore, the relentless focus on enhancing logistics infrastructure to alleviate transaction costs and enhance global competitiveness bodes well for the textile industry's growth trajectory.
In light of these observations, Beekaylon remains optimistic that the forthcoming full-fledged budget, slated for announcement around July, will address the pressing demands of the industry. As stalwarts in the polyester yarn manufacturing landscape, we remain steadfast in our commitment to pioneering sustainable solutions that not only elevate industry standards but also align with the nation's vision of economic resilience and environmental stewardship.
