India Interim Budget 2019: Over all ‘a feel good factor’ for the textile industry
Presenting the popular budget before the general elections was very much anticipated by the general masses and the industry. The Finance Minister Piyush Goyal has proposed Rs 5,831.48 crore budgetary allocation for the textile ministry for 2019-20, which is 16.01 per cent lower than the current fiscal. As per the budget document the revised expenditure (RE) for the textile ministry has been pegged at Rs 6,943.26 crore during 2018-19. The original budget proposal was Rs 7,147.73 crore to fund various programmes and schemes for the textile sector.
According to the budget document, Rs 700 crore has been allocated towards the Amended Technology Upgradation Fund Scheme (ATUFS) for the next fiscal, as against Rs 622.63 crore for 2018-19. In addition, a provision of Rs 1,000 crore has been made towards the Remission of State Levies (ROSL) as compared to Rs 3,663.85 crore in the revised estimate of 2018-19. The government had earmarked Rs 2,163.85 crore for ROSL in the previous year’s Budget.
Sanjay Jain, Chairman- Confederation of Indian Textile Industry, remarked, “The low allocation for ATUF & ROSL schemes for textiles is worrisome as it is clearly not sufficient to meet obligations under the schemes, both backlog and expected fund requirements in 2019-20. “However, since this is an interim budget, we hope more funds will be allocated for these schemes.” Jain feels that the procurement of Cotton by CCI under Price Support Scheme has increased from Rs. 924 crores to Rs. 2018 crores. However, the government should introduce direct system for the cotton farmers to ensure, no direct impact on cotton prices.
As per Texprosil Chairman, Dr. K V Srinivasan, the Budget 2019 exempting the individuals with net taxable income upto Rs.5 lakhs from tax, will lead to an increase in the disposable income of the salaried class which will lead to more consumption including an increase in the per capita consumption of textiles, which in turn will have a positive impact on the overall economy of the our country. “The increase in the budget allocation for the ROSL scheme during the fiscal year 2018-19 is a step in the right direction, and we hope that not only the existing rates for Madeups are revised upwards but also the coverage is extended to cotton yarn and fabrics,” he stated.
A few banks leaving the prompt corrective Action (PCA), relaxation for MSMEs on funding and interest rates will benefit 80% of the textile and clothing industry which falls under MSMEs.
The textile industry in southern India has appreciated the Union Budget, however they feel that the total allocation to the textile is inadequate, and it may be revised upwards in the regular Union Budget 2019-20. Southern India Mills Association, Chairman P. Nataraj feels that the substantial reduction in the budget allocation for RoSL and A-TUFS benefits would have serious impact on the textile industry. However he feels that that the Interim Budget 2019-20 would largely promote the handloom and powerloom sector. Raja M. Shanmugham, President Tirupur Exporters Association said, “The increase in Interest Equalization scheme allocation from ₹2,600 core to ₹3,000 crore would meet the recent increase in Interest Equalization for MSMEs from 3 per cent to 5 per cent.India News Region