India’s textile sector eye tax relief for exports in upcoming budget.

The Indian textile industry, a vital cog in the nation's economy, might see a shot in the arm with the upcoming budget. Industry experts are anticipating tax relief measures for textile exports, aiming to bolster India's competitiveness in the global market.

This potential tax relief comes alongside discussions regarding the National Textile Fund (NTF). Established in 2000, the NTF plays a crucial role in upgrading the textile sector's technology and infrastructure. Reports suggest that the budget might see an increased allocation for the NTF, enabling it to provide more significant support to textile manufacturers.

"A tax break for textile exports would be a welcome move," says Sandeep Kumar, Chairman, Confederation of Indian Textile Industry (CITI). "It would help us offset the production cost advantage enjoyed by some competing nations and make our exports more attractive." India's textile and apparel industry is a significant contributor to the country's GDP and job creation. However, the sector faces challenges like rising input costs and stiff competition from countries with lower production costs.

Tax relief on exports could incentivize textile manufacturers to increase their export volumes. Additionally, an invigorated NTF, with a larger budget, could provide much-needed assistance in modernizing machinery and processes within the industry. This modernization would enhance efficiency and productivity, making Indian textiles more globally competitive.

Industry stakeholders are keenly awaiting the budget announcement, hoping for measures that will revitalize the textile sector. Tax relief for exports and a strengthened NTF could be the game-changers that propel the Indian textile industry to new heights.