Home / Knowledge / News / Textiles / Union Budget 2020-21: Few hours to go

Union Budget 2020-21: Few hours to go

31
Jan '20
Pic: Shutterstock
Pic: Shutterstock
Businessmen, investors, market analysts, and all top honchos will be glued to their smart screens, when finance minister Nirmala Sitharaman presents Union Budget 2020-21 on February 1. While revival of the economy is top on agenda, increase in exemption limit in tax rates is high on the wishlist of industry stakeholders who want a revival in consumer demand.

Simplification of compliance and reduced regulatory burden are some of the demands from the industry and voicing the same, RS Jalan, managing director, GHCL said, "Our GDP today stands at about $2.79 trillion and doubling it in the next five years will require various growth-based and consumption led reforms especially when the Indian economy is facing a period of slowdown. To ensure that the Indian industry is ready to support the vision of $5 trillion economy the Budget 2020-21 needs to allow more freedom and ease of doing business. The Government needs to ensure simplification of compliance and reduced regulatory burden which is slowing down investment."

Speaking about the textile industry, Jalan said, "The Government announced and notified RoSCTL scheme to support one of the most ancient and labour-intensive textile industry, but even after nine months the mechanism of disbursal has not been framed and industry is still waiting for this much needed support. It also needs to introduce schemes in addition to RoDTEP (Remission of Duties or Taxes on Export Products) for Indian exporters to ensure that they get the same support as their competitors get from their governments."

Sustainability is currently the buzz word, and demand for eco-friendly manufacturing is increasing in the textile industry. According to Zenitex CEO Viral Desai "the textile industry is wading through a tough time with global competition and global pressure to curb pollution (both air and water). To promote sustainability, the Government should setup a nodal agency which can filter and rank industries according to the usage of renewable energy, sustainable colours, etc. The government can facilitate networking of such industries for associations and potential investors, promoting them through the 'Made in India' label so that they can have tie-ups, and work-based contracts with international players. This way more and more entrepreneurs will shift towards sustainability model of business."

The government should open newer avenues for businesses to flourish, feels Mithi Kalra, founder of fashion label Mithi Kalra. "On the innovation front, there is a need to give a boost in innovation across manufacturing and services sectors. In a manner like that of investment allowance of the past, eligible innovation projects that conserve natural resources such as water, need to be encouraged. Power and materials that lead to employment or exports should get tax credits at least to the extent of a quarter of the investment."

Will the budget offer anything for the retail sector is an obvious question, specially at a time when a gloomy outlook stares the sector. Sharing his expectations from budget, Dharmender Khanna, Lotto brand head, said, " Some of the challenges we face are maintaining multiple warehouses, streamlining multi channels of online and offline retail, high tariffs on imports among others. We are hoping that the Union Budget acknowledges some of these challenges and provides solutions for these. Also, the current import duty on footwear is 25 per cent, which is on the higher side and any further increase in this will make India an unviable market for an international brand like ours."

Another demand from budget is steps to strengthen the NBFC sector. "NBFCs have been instrumental in ensuring the last mile credit for the MSME sector which employs almost 50 per cent of the Indian workforce. NBFCs with increased liquidity will help boost investment, job creation thus enhancing consumption and growth in the economy," adds Jalan.

With every sector—from textile manufacturing, MSMEs to retail—having their own set of demand, it would be interesting to see how the finance minister plays a balancing act.

Fibre2Fashion News Desk (WE-DD)


Must ReadView All

Pic: Shutterstock

Textiles | On 22nd Feb 2020

Pharr sells Pharr High Performance to Coats Group

Pharr, a provider of differentiated textile products and assorted...

Pic: Shutterstock

Textiles | On 22nd Feb 2020

TOAI highlights importance of textiles in auto industry

The first edition of the conference 'Textile Opportunities in a...

Pic: Shutterstock

Textiles | On 22nd Feb 2020

Cocona's 37.5 fibres to have new biodegradable additive

All of the 37.5 staple fibres and filament yarns by Cocona, will now...

Interviews View All

Abhishek Samdaria, Reflete

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Top executives, Fabric manufacturers

Top executives
Fabric manufacturers

Domestic manufacturers would get an edge over imported products

Smita Murarka, Amanté

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Abhishek Pachauri,

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Devendra Gupta,

Devendra Gupta

Reforce, a start-up based in Gurgaon, aims to revolutionise the fitness...

Iacopo Pardini,

Iacopo Pardini

Founded in 1953, Italian engineering company Arioli Spa started...

Frank Heislitz, Freudenberg

Frank Heislitz
Freudenberg

Freudenberg Performance Materials is a leading global manufacturer of...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, the Association of the Nonwoven Fabrics Industry, serves hundreds of ...

Razvan Popescu, Directa Plus SpA

Razvan Popescu
Directa Plus SpA

Directa Plus is one of the largest producers and suppliers worldwide of...

Sidharth Sinha, Sidharth Sinha

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

Ruma Devi is a jet-setting promoter of artisans who has empowered...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


February 2020

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


Advanced Search