Long wish list of Indian textile industry for Union Budget 2023-24

According to industry sources, various trade organisations including the Confederation of Indian Textile Industry (CITI), have submitted suggestions and recommendations to the Ministry of Finance. These bodies have suggested a scheme for promoting Traceability and Sustainability in Textile Value Chain.

Traceability and sustainability have become critical for exporting textiles & apparel (T&A) products to western markets such as the UK, the EU, and the US. Since both of them are new concepts and limited technologies are available, the industry is seeking an Incentivisation Scheme for both Producers and Exporters who meet the requirement of Traceability of the inputs used, especially cotton, and Sustainability i.e., use technologies that require lower consumption of water and electricity, lower discharge of hazardous chemicals, and ensure at least 20 per cent recyclability of materials used. The government may provide funds for promoting Research & Development (R&D) on new technologies and a subsidy for users to implement these technologies.

Indian textile industry has a long list of wishes which they expect to be fulfilled in the upcoming Union Budget 2023-24, scheduled to be presented by finance minister Nirmala Sitharaman on February 1. Suggestions and recommendations have already been submitted by various industries bodies to the minister, who will discuss further during Pre-Budget meetings.

Industry bodies have also suggested prioritisation of National Textile Fund, which is mooted by the ministry of textiles with an aim to fund investments in technology upgradation and infrastructure development of the textiles and clothing industry. There is also a strong demand for raising allocation of funds of ₹7,700 crore for disbursement under the TUFS subsidy.

After full year of costlier cotton, the industry made a pitch for support to tackle price fluctuations in the natural fibre. So, the government may allocate adequate funds for achieving international status for Indian cotton. The government may also consider a Cotton Price Stabilisation Fund Scheme, which may consist of 5 per cent interest subvention, reduction of margin money from 25 per cent to 5 per cent and increase of credit limit from three months to nine months. It would boost exports and enable 2-3 per cent additional growth in the industry.

The industry is also urging the government to take steps for increasing production and productivity along with quality. The government may allocate adequate funds towards the same and may appropriately implement a Mission Mode approach. It will be beneficial for industry and farmers as well.

Additionally, trade organisations are also the government to promote production of Extra Long Staple (ELS) cotton. Currently, the Indian industry is annually importing about 5-6 lakh bales 170 kg ELS cotton to meet its domestic requirement.

Fibre2Fashion News Desk (KUL)