Textile industry welcomes Union Budget plan to open seven textile parks
The upcoming Union Budget from 2021 to 2022 has proposed the creation of seven textile parks across India to the applause of businesses in the sector, but there are fears over the proposed hike in raw cotton import duties.
The upcoming Union Budget includes a ‘Mega Textile Investment Scheme', which is designed to increase India’s standing in the global textile market and establish seven textile parks with high-tech facilities, the Press Trust of India reported. The construction of the textile parks would increase employment in the sector and promote developments in technology.
“The Mega Investment Textiles Parks (MITRA), under which seven textile parks will be established over a period of three years, is a positive step that will enable the industry to become globally competitive, attract large investments and boost employment generation,” said Manoj Patodia, chairman of the Cotton Textiles Export Promotion Council (TEXPROCIL), the Press Trust of India reported.
The Union Budget also proposes adding a 10% basic customs duty on raw cotton imports. This is designed to boost the domestic raw cotton market in the long run but would lead to an increase in domestic prices which some businesses fear will make India less internationally competitive in the sector.
In order to boost the domestic man-made fibre sector, the budget has proposed a reduction in the basic customs duty on caprolactam, nylon chips, and nylon fibre and yarn to 5%. This proposal is designed to aid micro, small, and medium enterprises which would benefit from reduced costs.
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