MSMEs in textile sector to get major relief with reforms announced in Union Budget 2023-24 : TEXPROCIL

Mumbai (Maharashtra) :  The Union Budget for Fiscal Year 2023–24 is a “employment intensive, growth-oriented budget” that will benefit India’s economy. Sunil Patwari, Chairman of The Cotton Textiles Export Promotion Council (TEXPROCIL), said that the reforms announced in the Union Budget 2023-24 would be a “major relief” for SMEs in the textile sector and would help them compete more effectively on the global market.

The Chairman praised the Government for proposing new tariff lines for a variety of products, including Cotton, as this will ease trade. The government, via PPPs, will also adopt a cluster-based and value-chain approach to increase Extra Long Staple Cotton (ELSC) productivity (PPP). He praised the move because it would encourage farmers, the government, and businesses to work together to improve access to inputs, educational opportunities, and commercial markets.

Reacting to the Budget 2023, Chairman, Texprocil said “The Union Budget has given a push to job creation through proposals such as Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 4.0 and setting up of 30 Skill India international centres that would encourage expansion in businesses and industry, thus leading to more jobs.”

The Chairman hailed the Government for taking step towards minimization of the regulatory compliance burden to improve Ease of Doing Business for industry.

On the Interest Equalization Scheme, the Chairman, TEXPROCIL, said, “the increase in the allocation from Rs.2376 crore in 2022-23 to Rs.2932 crore in 2023-24, up by 23%, will help in supporting exports particularly by MSMEs and other exporters in view of the rising interest rates.” He appealed for the inclusion of Cotton Yarn amongst the list of 410 items which are eligible for interest subvention.

Chairman, Texprocil said that the increase in allocation for the MAI Scheme from Rs.160 crore in 2022-23 to Rs.200 crore in 2023-24 is a welcome step towards showcasing Indian Textiles in global markets.

www.texprocil.org