Vinod Kumar Gupta, managing director of Dollar Industries Ltd., welcomed the move of extending the ECLGS scheme, which, he felt, will be beneficial for micro, small and medium enterprises, which comprise several textile and hosiery players.

“The credit and fiscal support of ₹5 lakh crore will give a huge boost to this sector, encouraging new businesses to come to the fore. Besides, the announcement will certainly generate more than 10 lakh of employment opportunities in a short span,” he said.

“The proposal of 350 exemption entries to be gradually phased out is a significant move. These include exemption on certain agricultural produce, chemicals, fabrics, medical devices and drugs and medicines for which sufficient domestic capacity exists. We are hopeful that this is likely to benefit the textile industry,” Gupta added.

“Although there has been a 41 per cent increase in textile exports from April-December 2021 against last year, the measures taken [in the budget] can further help the sector to be more competitive with global economies. Additionally, the exemptions allowed on imports based on export performance in handicrafts, garments, and leather will work well for the industry,” said Sanjay Jain, chief executive officer, PDS Limited.

PDS Limited operates as an integrated design-led platform offering product development, sourcing, virtual manufacturing, and distribution for major brands and retailers worldwide.

“India’s textile industry must aim for $65 billion in exports in the next five years, especially with the ‘China Plus One’ sentiments providing India a commendable position as global companies look at sourcing and manufacturing destinations outside of China,” Jain said.  

Harkirat Singh, managing director of Aero Club that makes Woodland and Woods brands of footwear, feels the well-balanced budget has a clear focus on investment to stimulate growth and development.

Calibration of customs duties for a few components in the textiles, leather and footwear industries are bound to further boost the Aatmanirbhar Bharat vision of the government and will certainly lead to value-added manufacturing and reduction of imports, he said.

“Industries based in India will certainly see a better scope for the 'Make in India' programme with home manufactured goods and better justification for the growth of Indian industries. This budget will give way to exports from India and is bound to bring a positive environment for all-round growth,” Singh added.

Fibre2Fashion News Desk (DS)