Union Budget 2022-23 Supports Textile Industry Growth

Trade & Policy

Union Budget 2022-23 Supports Textile Industry Growth

'This Is A Growth-Oriented Budget' [caption id="attachment_23540" align="alignnone" width="625"] Dr. S N Modani, CEO & Managing Director, Sangam India Ltd.[/caption] "The Union Budget 2022 paves the way for excellent growth in the times to come. The government has given clear indication that the budget is more growth-oriented. The budget puts immense thrust in manufacturing and capital expenditure which should enable the economy to grow and achieve its target of being a US$ 5 trillion economy by 2025. The positive initiative taken towards green power and the allocation of Rs 19,500 crore for manufacturing of additional solar panels to meet the requirement of solar power in multiple sectors is noteworthy. The highest GST collection for the month of January 2022 shows that the Indian economy is on the path of robust growth. Even the figure of US$ 635 trillion forex reserve signifies the economic strength of the nation on the export front. All put together, this Union Budget is very promising, growth-oriented and will also be able to address the concerns of unemployment." 'Import Exemptions Will Help India’s Textile Exports' [caption id="attachment_23541" align="alignnone" width="625"] Sanjay Jain, CEO, PDS Limited[/caption] "The retail and textile industry has been keeping a close eye on the Union Budget to propel them out of the pandemic’s afflictions. The recently announced Production Linked Incentive (PLI) scheme for textiles, with an approved outlay of Rs 10,683 crore for five years signifies a great step forward for the industry. Although there has been a 41% increase in textile exports from April-December 2021 against last year, the measures taken can further help the sector to be more competitive with global economies. Additionally, the exemptions allowed on imports based on export performance in handicrafts, garments, and leather will work well for the industry. India’s textile industry must aim for US$ 65 billion in exports in the next five years, especially with the “China Plus One” sentiments providing India a commendable position as global companies look at sourcing and manufacturing destinations outside of China.” 'We Welcome The Greater Emphasis On Green Development [caption id="attachment_23542" align="alignnone" width="625"] Aarti Jhunjhunwala, Executive Director, Fineotex Chemical Limited[/caption] "India’s GDP is projected to grow at a historic high of 9.2% in FY2022. The chemical sector being one of the leading contributors to the economy, has the potential to significantly help India to catapult to becoming a US$ 5 trillion economy by 2025. The speciality chemical industry being a niche segment will see a steady growth over the next few years driven by increase in domestic consumption and demand from foreign markets. The growth will further the goal of achieving GOI’s policies such as ‘Atmanirbhar Bharat’, and ‘Make in India’. The Budget 2022 has provided for the comprehensive review to simplify the customs rate and tariff structure particularly for sectors like chemicals, textiles and metals and minimise disputes. This is a welcome move. Removal of exemption on items which are or can be manufactured in India and providing concessional duties on raw material that go into manufacturing of intermediate products is another big step forward. With Budget 2022 laying greater emphasis on green energy and sustainable development, ESG related certifications amongst industries will definitely be the focus. Since we are already at the forefront of the sustainability led activities, FCL will be able to capitalise on the same. The Budget 2022 has also announced the extension of Production Linked Incentives (PLI) Schemes to additional sectors including the textile sector. This will further boost capacities in the textile segment and thus will help the associated industries like speciality chemicals segment, to increase their capacities."