The Minister of State for Textiles (Independent Charge), Parliamentary Affairs, Water Resources, River Development and Ganga Rejuvenation, Mr. Santosh Kumar Gangwar, applauding the Union Budget, said: “This is a forward-looking Budget for all, including the textile industry. The Budget recognizes the aspirations of a new India which is looking towards the Government for decisively moving towards high growth, low inflation and more jobs. The Budget aims for a 7 per cent or higher growth rate in a sustained manner within the next few years and will also usher in macro-economic stability in the near future.”
He has welcomed the proposals for the textile sector which include setting up of mega textile clusters at Varanasi, Bareilly, Lucknow, Surat, Kuttch, Bhagalpur, Mysore and one in Tamil Nadu at an outlay of Rs. 200 crores. The Finance Minister also announced a Trade Facilitation Centre and a Crafts Museum at an outlay of Rs. 50 crores to develop and promote handloom products and carry forward the rich tradition of handlooms of Varanasi.
A Hastkala Academy for the preservation, revival, and documentation of the handloom/handicraft sector in PPP mode in Delhi, at an outlay of Rs. 30 crores, has also been announced. A Pashmina Promotion Programme (P-3) and a programme for the development of other crafts of Jammu & Kashmir also figured in the Union Budget, for which a sum of Rs. 50 crores has been set aside. “The Budget recognizes the core strengths of the textiles sector and aims to promote them with a strong human emphasis”, said Mr. Gangwar.
Further, to encourage exports of readymade garments, the Finance Minister has proposed to increase the duty-free entitlement for import of trimmings, embellishments and other specified items from 3 per cent to 5 per cent of the value of their exports. Apart from it, faster clearance of import and export cargo will also be implemented to reduce transaction costs and improves business competitiveness.
The textile industry, which plays a pivotal role in the economy, also majorly contributes to industrial output, employment generation and the export earnings of the country. It contributes about 14 per cent to the industrial production, 4 per cent to the GDP and 11 per cent to the country’s export earnings. It is the second largest provider of employment after agriculture.