Tamil Nadu’s textile sector has requested export incentives and extra credit support in the Union government’s budget for 2023–24, which will be presented in Parliament on February 1.
The Tiruppur textile industry, the first to export textiles from Tamil Nadu and, for that matter, from South India, has asked for loan support for the micro, medium, and small scale businesses (MSME). The sector has applied for credit assistance through the Emergency Credit Line Guarantee Plan (ECLGS).
According to the exporters, the industry that has been dominating the European knitwear market is in a difficult position as a result of the economic slowdown and the uncertainty in the market caused by the conflict in Ukraine.
President of the Tiruppur Exporter’s Association K.M. Subramanian (TEA) stated in a statement, “Both MSME and non-MSME manufacturers must receive a 5% interest subsidy on export financing. It should be emphasised that buyers are alleging a number of reasons for their global payment delays.”
The textile exporters also said that Tiruppur’s textile business has experienced a sharp decline in their key summer goods order from European nations. Exporters and owners of knitting businesses reported a fall of 30–40% in orders from the European market alone, which has impacted the industry’s ability to survive.
Additionally, the exporters request that the amount of the RoSCTL (Scheme for Refund of State and Central Taxes and Levies on Export of Garments and Made-ups) duty credit scrips, , which must be raised.
The Tiruppur knitwear sector also wants the import taxes on raw cotton and viscose staple yarn to be eliminated (VSY).
Due to the rise in import taxes on the gold and silver used to make zari or jarigai, the price of Kancheepuram Silk Saris has also increased. This has also affected the sales of Kancheepuram Saris, a brand unto themselves.
It should be mentioned that 40% of the nation’s spinning mills are located in Tamil Nadu, which also produces 19% of the nation’s textiles. It ranks first in the nation for the manufacture of clothes and second for textiles.
