Indian Textile Industry Seeks Relief in Budget 2024: Lower cotton duties, tech mission in focus
The Indian textile industry has laid out its key demands for the upcoming Union Budget 2024, seeking relief from rising cotton prices, import duties, and a lack of domestic production. In a pre-budget memorandum submitted to the government, industry body SIMA (Southern India Mills' Association) outlined proposals aimed at boosting competitiveness and sustainability.
Duty relief on cotton tops the list. A major request centers on removing the 11 per cent import duty on cotton, particularly the high-quality extra-long staple (ELS) variety. This, SIMA argues, would significantly reduce production costs and make Indian textile exports more attractive in the global market. Additionally, scrapping the 10 per cent duty on waste cotton would benefit handloom and power loom sectors, known for their reliance on recycled materials.
Recognizing the growing global appetite for eco-friendly products, SIMA proposes a dedicated classification for recycled textiles and clothing. This, they believe, would simplify identification and attract international brands seeking sustainable options.
To address the issue of import dependence, SIMA advocates for a second Technology Mission on Cotton. With an allocation of Rs 1,500 crore, they aim to increase cotton production to 550 lakh bales by 2030, making India self-sufficient in this crucial raw material. The industry's wishlist extends beyond duties and cotton. SIMA also demands:
Clearance of pending claims under the Technology Upgradation Fund Scheme (TUFS). This scheme incentivises modernization in the textile sector, and clearing backlogs would accelerate technological advancements.
Bringing fuel used for generating electricity under GST. This would significantly reduce power costs for textile manufacturers, improving overall profitability.
Funding for skill development because upskilling the workforce is crucial for the industry's continued growth, and dedicated funding would support this objective.
Encouragement for domestic textile machinery production and reducing reliance on imported machinery would not only boost self-sufficiency but also create new jobs within the sector.
The Indian textile industry, a major contributor to the nation's GDP and employment, hopes that its Budget 2024 demands will find favor with the government. If implemented, these measures could revitalize the sector, enhance its global competitiveness, and pave the way for a more sustainable future.