Budget 2021

Textile mega park scheme is a much-needed proposal: ITF

G Balachandar Chennai | Updated on February 01, 2021

Textile industry associations have termed the measures announced in the Budget as timely

The Union Budget has brought big cheer to the domestic textile sector as it has spelt out much-needed measures for the sector to grab the emerging opportunities, particularly in the export segment.

The initial reactions have been positive, and the textile industry associations have termed the measures announced in the Budget as timely.

“The PLI scheme and now the mega park scheme will bring much-needed scale and build capacities in the textile sector to capitalise on the export opportunities,” said Prabhu Dhamodharan, Convenor of Coimbatore-based Indian Texpreneurs Federation.

Also read: Budget 2021 Highlights

Union Finance Minister Nirmala Sitharaman said in her Budget speech that to enable the textile industry to become globally competitive, attract large investments, and boost employment generation, a scheme of Mega Investment Textiles Parks (MITRA) will be launched in addition to the PLI scheme.

This proposed scheme will create world-class infrastructure with plug-and-play facilities to help create global champions in exports. Seven textile parks will be established over three years, she said.

Also, she announced relief by way of reducing duty to support the revival and growth of the sector.

The textiles sector generates employment and contributes significantly to the economy. There is a need to rationalise duties on raw material inputs to man-made textiles. We are now bringing nylon chain on par with polyester and other man-made fibres. We are uniformly reducing the BCD rates on caprolactam, nylon chips, nylon fibre and yarn to 5 per cent. This will help the textile industry, MSMEs, and exports, too, the Finance Minister said.

Published on February 01, 2021

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