India’s minister for finance and corporate affairs Nirmala Sitharaman presenting the Union Budget 2023-24 to President Droupadi Murmu at Rashtrapati Bhavan, in New Delhi on February 01, 2023. Pic: PIB
The government has identified five new HS Codes for cotton, for further classification of cotton as per staple length. This will help in calibrating policy support for the segments which are import dependent or need further incentivisation.
The announcements made by finance minister Nirmala Sitharaman in Union Budget 2023-24 shows government’s priorities for India’s textiles sector. The minister gave special focus on Extra-Long Staple (ELS) cotton. Five new HS codes will also sharpen government’s policy measures. Plus, higher allocations under RoDTEP, RoSCTL and ATUFS may provide relief.
Finance minister has indicated government’s focused approach for enhancing the productivity of ELS cotton, by adopting a cluster-based and value chain approach through public private partnerships (PPP) which means collaboration between farmers, state and industry for input supplies, extension services, and market linkages. The textile industry now eagerly looks forward to further details of the policy in this regard.
However, the minister also announced increase in import duty of textile machinery to 7.5 per cent. It may impact the new investments planned in this sector. But it is in line with the government priorities of Atma Nirbhar Bharat and ‘Make in India’. In this regard, the industry body CITI has requested for retaining 5 per cent import duty for all types of textile machineries for the next three years or till the domestic manufacturers establish themselves to meet the domestic demand.
As per Budget documents, outlay for RoDTEP scheme has been increased from ₹13,699 crore in 2022-23 to ₹15,069 crore in 2023-24. The allocation for RoSCTL scheme is increased from ₹7,641 crore for 2022-23 to ₹8,405 crore for 2023-24. Likewise, the outlay for Amended Technology Upgradation Fund Scheme (ATUFS) is increased from ₹650 crore in 2022-23 to ₹900 crore in 2023-24. Customs duty on naphtha is increased from 1 per cent to 2.5 per cent.
Fibre2Fashion News Desk (KUL)