India Budget 2024-25: Key Highlights for the Textile Sector
2024-07-23 16:55:35
https://www.smartinfoindia.com/news-details-english/less-than-average-rainfall-in-bhiwani-crisis-on-kharif-cultivationIndia's Budget 2024–2025: The Textile Sector's High Points
Finance Minister Nirmala Sitharaman's Budget 2024-25 includes significant measures for the textile and leather sectors. The basic customs duty (BCD) on real down filling material from duck or goose has been reduced to boost export competitiveness. The list of exempted goods for manufacturing leather and textile garments, footwear, and other leather articles for export has been expanded. The BCD on methylene diphenyl diisocyanate (MDI) for spandex yarn production has been reduced from 7.5% to 5%, subject to conditions, and the export duty structure on raw hides, skins, and leather has been simplified.
A new centrally sponsored scheme will skill 20 lakh youth over five years, upgrading 1,000 Industrial Training Institutes (ITIs) with industry-aligned courses. Special attention is given to MSMEs and labour-intensive manufacturing. A Credit Guarantee Scheme will facilitate term loans for MSMEs without collateral, providing guarantee cover up to ₹100 crore. Public sector banks will develop in-house credit assessment capabilities based on MSMEs' digital footprints. A new mechanism will support MSMEs in maintaining bank credit during stress periods with government fund guarantees.
E-Commerce Export Hubs will be set up in public-private partnership (PPP) mode to help MSMEs and traditional artisans sell products internationally. Investment-ready “plug and play” Industrial Parks will be developed in or near 100 cities, with twelve industrial parks under the National Industrial Corridor Development Programme being sanctioned. Rental housing with dormitory-type accommodation for industrial workers will be facilitated in PPP mode with viability gap funding (VGF) support. Rules for Foreign Direct Investment (FDI) and Overseas Investments will be simplified to facilitate FDIs, prioritize investments, and promote the use of the Indian Rupee in overseas investments.
