CMAI Welcomes Union Budget 2020-2021

Industry news

CMAI Welcomes Union Budget 2020-2021

The Clothing Manufacturers Association of India (CMAI) has welcomed the Union Budget 2020-21 as positive and growth oriented for the apparel industry. Rakesh Biyani, President, CMAI said that the most important step in this Budget was the removal of the anti-dumping duty on PTA, which was a long-standing demand of the textile manufacturing value chain, as PTA is a crucial input for polyester production. This will potentially open up the MMF value chain, and give a fillip to the entire MMF industry and enhance its global competitiveness. Technical textiles, home furnishing, sportswear, sarees, dress materials, etc, will all benefit greatly from this move. This move has the potential of being an important game changer for the MMF segment of the industry. Biyani further stated that the budget had proposed several other measures which could benefit the textile industry, but which appear to be work in progress at this point of time – such as the Technical Textile Mission, a review of the Rules of Origin especially in the FTAs, a review of cheap imports of goods that are hurting the MSME sector, refund of all taxes and levies for exports, and the target of making every district an export hub. “The proposed financing of invoices of the MSME sector could again be a huge benefit to the industry, which is largely comprised of the MSME units. If indeed all these plans fructify as per the stated goals and objectives, this could be a landmark budget for the industry,” he believes.