Home / Knowledge / News / Textiles / Textiles industry expects new allocations in Union Budget

Textiles industry expects new allocations in Union Budget

Jan '20
Pic: Shutterstock
Pic: Shutterstock
Indian textiles industry is expecting the Union Budget 2020-21 to be more focused with new financial allocations to strengthen the sector, especially the MSME segment. Union finance minister Nirmala Sitharaman is scheduled to present Budget in Parliament on February 1 at a time when consumer demand is down and GDP growth rate has also fallen.

Focus on cotton textile segment, brining all textile products under Remission of Duties or Taxes on Export Product (RoDTEP), new schemes to benefit local manufacturers, especially MSMEs, and giving a boost to greener production are among the wish list of textile industry for the upcoming Budget.

The cotton sector is the second most developed sector in the textile industry, with cotton yarn and fabrics exports accounting for about 23 per cent of India’s total textiles and apparel exports.

However, exports of cotton textiles are declining drastically according to Ujwal Lahoti, executive chairman of Lahoti Overseas Ltd. "Cotton yarn exports declined by over 30 per cent year-on-year. The situation on cotton textiles exports front is now gloomy, so we need support from the Government on this matter."

"A new scheme RoDTEP was supposed to go into effect from January 1, 2020, but it is yet to be implemented. We urge the government to include all textile products across the board under this umbrella scheme, which will further restore India’s share in global markets,” Lahoti told Fibre2Fashion.

Though the Government is promoting indigenous comprehensive capabilities, more needs to be done in the sector, feels Smarth Bansal, DGM-Product Management, ColorJet. “We expect the government to empower indigenous manufacturers by training them with all-inclusive skills. Although, there are schemes like Amended Technology Upgradation Fund Scheme (ATUFS) and Export Promotion Capital Goods (EPCG), more needs to be done for the local manufacturers to help them better compete with their international counterparts, especially in China.”

The Indian textile industry is set to be valued at $250 billion by end of the year 2020 and with a unified trajectory the sector can propelled further to new heights. Simultaneously, the industry is marching towards greener production in terms of sustainable products manufactured with green energy. "Expectation of consumers is growing with the products they purchase. Manufacturing everything green with continuous upgraded fashion requirement needs capacities to produce multiple products under one roof, which is possible only with MSME units. Due to the current slowdown, MSME’s have reduced their production capacities and are struggling to survive. Hence, the government needs to focus not just only in-terms of offering incentives but making sure, they are being delivered in time to the right industry,” says Akhilesh Taparia, CEO, Go Green Textiles India.

"Focus on MSMEs will generate immediate employment opportunities and will surely contribute in improving India’s economic condition,” adds Taparia.

Fibre2Fashion News Desk (WE-DD)

Must ReadView All

Pic: Shutterstock

Textiles | On 29th Feb 2020

Nepal's pashmina sector gets European Union boost

A new project funded by the European Union to strengthen Nepal's path ...

Pic: Shutterstock

Apparel/Garments | On 29th Feb 2020

Coronavirus outbreak hits Thai garment industry

The coronavirus outbreak has been affecting the Thai apparel industry ...

Pic: Shutterstock

Retail | On 29th Feb 2020

Indian govt clarifies on sourcing of goods from SEZs

Goods procured from units in special economic zones (SEZs) by...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Overall, Union budget 2018-19 is very balanced

Shawn Honeycutt, Bolger & O'Hearn

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Cyril Pereira, Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Urmil Arya,

Urmil Arya

Sushila International, a well established textile organisation established ...

Tina Antoniades,

Tina Antoniades

India-headquartered Lulu & Sky is a rapidly escalating brand with the...

Farheen B Rahman & Priti Jain,

Farheen B Rahman & Priti Jain

Founded by business-designer duo <b>Priti Jain and Farheen Rahman</b>,...

Urs Stalder, Sanitized AG

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Johan Berlin, Investkonsult Sweden AB

Johan Berlin
Investkonsult Sweden AB

Investkonsult Sweden AB are consultants in the nonwoven and absorbent...

Pierre Wiertz, EDANA

Pierre Wiertz

EDANA, the international association serving the nonwovens and related...

Sandeep and Sarah Shaikh Gonsalves, SS Homme

Sandeep and Sarah Shaikh Gonsalves
SS Homme

SS Homme celebrates the craft of traditional tailoring through the bespoke ...

Sweta Tantia, Tahweave & Garo

Sweta Tantia
Tahweave & Garo

Designer Sweta Tantia owns Garo, a couture indutva or ethnicwear brand,...

Varsha Wadhwa, VW

Varsha Wadhwa

Coming from a family that ran a business of jute and linen mills since...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

February 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search