The Tirupur Exporters Association welcomes the Central Budget for the year 2024 – 25 announced today in the Parliament by the Hon’ble Minister of Finance Smt. Nirmala Sitaraman with major emphasis on four thrust targets, namely agriculture, youth, Middle income group and women.
The following announcements in the Budget would have positive impact for the readymade garment industry.
Employment and Skills Development
• Three schemes for employment and skill development have been announced in the Union Budget 2024-25.
1. One month salary subject to a maximum of Rs.15000/- will be given to every newly employed youth in three installments. This will benefit 2.1 crore youth.
2. Government will subsidize up to Rs.3000/- on Provident Fund contribution of entrepreneurs for newly created jobs. The scheme will be implemented for two years for all new workers. 50 lakh new jobs will be created through this.
3. Subsidy for first four years through Provident Fund to all newly employed workers and entrepreneurs to benefit 30 lakh youth.
• 20 lakh youth will get skill training in five years.
• 1000 vocational training institutes will be developed.
• Curriculums will be designed to provide industry-specific training.
Manufacturing and Services (MSME)
• A new loan appraisal model for MSME loans will be established for banks avoiding BASEL III
• A Government loan guarantee scheme for MSMEs up to 100 crores in the manufacturing sector will be implemented.
• Adequate credit assistance will be provided to MSMEs when they face financial constraints and fall under Stressed Asset Category.
• The limit for Mudra loan scheme will be increased from 10 lakhs to 20 lakhs.
• 12 Industrial Parks will be set up with plug and play facilities through Central/State Governments and Entrepreneur Partnership (PPP).
• Dormitory type rental houses will be built under PPP model for the convenience of industrial workers.
• 1 crore youth will be offered internship and imparted job training in 500 leading companies with stipend of Rs.5000/- per month. Also, a one-time incentive of Rs.6000/- will be provided through CSR contribution of the company.
• Reduction of duty on import of accessories required for manufacture of garments.
• Power generation through rooftop solar will be encouraged.
• One lakh crore will be earmarked for research and development.
• 11 lakh crore capital will be earmarked for infrastructure development.
• GST procedural issues will be eased.
• Standard Operating Procedure will be implemented for TDS Deduction.
• Standard Deduction limit in Personal Income Tax increased from Rs.50,000/- to Rs. 75,000/-
Further, we look forward to announcements on import of garments and textiles from Bangladesh, Alternate scheme for TUF, interest subsidy on packing credit loan to exporters, extension of ECLGS etc. soon.