The Interim Budget 2024 offered on Thursday noticed ₹1,000 crore larger allocation for the textile and attire sector. Of the entire allocation of ₹4,392.85 crore in contrast with ₹3,443.09 crore final yr, the Budget supplied ₹600 crore for the procurement of cotton by the Cotton Corporation of India (CCI) beneath the value assist scheme, although there was nearly no allocation for this within the earlier monetary yr. With a stoop in cotton costs, the CCI is shopping for cotton from farmers in a number of elements of the nation on the minimal assist value (MSP) for the reason that starting of the cotton season in October 2023.
The Budget additionally elevated the allocations for schemes for handicraft improvement, the National Technical Textiles Mission, and the PM MITRA scheme.
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Though textile and attire exports have been declining for greater than a yr, allocations for export promotion research and actions was diminished to ₹5 crore from ₹59 crores in 2023-2024.
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Meanwhile, in a separate press launch, the Ministry of Textiles stated the Union Cabinet chaired by Prime Minister Narendra Modi had accepted the continuation, until March 31, 2026, of the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for the export of attire and clothes. This will present the steady coverage regime important for long-term planning within the textile sector.
The Cabinet had accepted the scheme until the tip of March 2020 and prolonged it until March 31, 2024. Now, it’s going to proceed for an additional two years. The Budget allocation for the scheme this yr is ₹9,246 crore.
Welcoming the extension of the RoSCTL, the textile business hoped the complete Budget would deal with the necessity for adjustments in customs duties.