The Clothing Manufacturers Association of India (CMAI) welcomed the Union Budget 2022 presented by the Honorable Finance Minister Smt Nirmala Sitharaman, as a Growth oriented Budget which contains several measures which encourages Capital Expenditure and other Growth related activities.
The extension of the ECLG Scheme for MSMEs for one more year should also help the Apparel Industry, since many of the units in the Sector are still struggling to overcome the adverse effects of the Covid pandemic. However, it is unfortunate that the enhanced outlay for the Scheme is restricted only for the Hospitality Industry – as the Retail Industry was as badly impacted in the pandemic Hospitality. Even under the current wave, Retail continues to be impacted with lockdowns, partial closures, limited working hours, etc.
One bright spark of the Budget specific for the Apparel Industry is the removal of Import Duty on Embellishments, Trimmings, Buttons, etc. this has been a long time demand of the Industry and should particularly help Apparel Exports to become more competitive.
Whilst details are not yet available of the changes the Hon’ble Finance Minister is indicating for the SEZs, if significant, should also assist the Sector since several units in the SEZs are from the Apparel Sector.
The incentives for new Manufacturing units should also benefit the Sector as this is closely aligned to the PLI Scheme.
