Provision for Textile Infrastructure in Budget Increased to Rs, 1860 Cr in 2017-18

Provision for Textile Infrastructure in Budget Increased to Rs, 1860 Cr in 2017-18

With the vision to increase output and jobs in the textile sector by Prime Minister, Narendra Modi, the Union Budget has given a major boost to textile infrastructure by almost three times in increasing the allotment for building textile parks, incubation facilities, processing and development centres.

The textile infrastructure provision has been increased from Rs 506 crore in FY17 to Rs 1,860 crore in 2017-18. These increased funds will also be used for the Pradhan Mantri Rojgar Protsahan Yojana to promote employment in the sector. Infrastructure is the only segment of the total textile industry which has got higher funds.

Clothing Manufacturers’ Association of India, President, Rahul Mehta said, “Though there are no new schemes or programmes specifically for the textiles or garment industry, the Budget has several provisions that will help the sector to grow faster.”

 “The allocation for the textile industry used to go for TUFS but the industry felt that besides modernization, more is needed in infrastructure such as plug and play facilities. So, the allocation is in the right direction as will improve the investment climate in textile parks,” said an industry expert. The budgetary allocation is down from Rs 2,610 crore in FY17 to Rs 2,013 crore now.

The largest chunk of the spent, Rs 1600 crore is expected from the remission of state taxes which will make garment exports competitive. The government has encouraged domestic textile manufacturing which has lost market share to Bangladesh and Vietnam by creating more incubation centres.

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