Union Finance minister Nirmala Sitharaman presented the Interim Budget – 2024 today ahead of the Lok Sabha elections in 2024, marking the final budget in the second term of Prime Minister Narendra Modi. This budget is interim in nature and the comprehensive budget for the financial year 2024-25 will be introduced only after the formation of the new government following the general elections.
In a recent Budget – 2024 review, it has come to light that there were no major policy announcements, as expected. However, a closer look at the budget allocations reveals several noteworthy details.
The budget allocation for cotton procurement has been set at 600 crore, which aligns with the average allocation in recent years. Furthermore, the allocation for the Remission of Duties and Taxes on Exported Products (Rodtep) scheme has seen a 5.8% increase, while the Remission of State Levies on Exported Products (RoSCTL) has seen a substantial 10% boost. Unfortunately, the Production-Linked Incentive (PLI) scheme has not received any allocation in this budget. On a positive note, the allocation for the PM Mitra scheme stands at Rs 300 crore.
The budget also demonstrates a commendable commitment to the development of technical textiles and research and development (R&D). This emphasis on investment in these areas is indicative of a forward-thinking approach to bolstering the textile industry.
However, there is a sense of disappointment regarding the lack of action on two critical fronts. Firstly, there has been no initiative to address the removal of import duties on raw cotton. Secondly, there has been no effort to implement a minimum import duty on knitted fabric imports, despite concerns about dumping practices from China. These issues continue to pose challenges to the domestic textile industry.
While the absence of major policy announcements may be somewhat expected, the allocation decisions in this budget shed light on the government’s priorities and commitments. As industry stakeholders, we will continue to advocate for the removal of import duties on raw cotton and the implementation of minimum import duties on knitted fabric imports to ensure the growth and sustainability of the textile sector.
CMAI WELCOMES CONTINUATION OF RoSCTL SCHEME
CMAI welcomed the decision by the Union Cabinet to extend the Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) for export of Apparel/Garments and Made ups upto 31st March 2026.
CMAI President, Rajesh Masand, thanked the Government and in particular, the Ministry Of Textiles saying that the “Continuation of Scheme for proposed duration of two (2) years will provide predictability and stability which is essential for long term trade planning, more so in the textiles sector where orders can be placed in advance for long term delivery.”
“The RoSCTL Scheme is in line with the universally accepted principle of International Trade that taxes and duties should not be exported, to enable a level playing field in the international market for exports” he added.
Indian Apparel, Apparel & Textile News