“This budget has made some bold choices and bold moves that will immediately lead to more jobs. These choices are quite practical and creative. The measures encompass the introduction of an internship initiative, the resolution to reimburse newly recruited employees for one month’s wages, and financial aid for employees earning over one lakh rupees. These are admirable steps that are being taken. We need additional information before we can make any firm recommendations because there are still a number of unclear areas. Nevertheless, the budget presented by the finance minister is incredibly imaginative, unique, and practical. Since the textile and apparel industry is more labor-oriented than other industries, even while most of these solutions are applicable to it, they will likely benefit it just as much, if not more.
The recently announced steps to facilitate international investment and boost bank credits to MSME’s will also benefit the textile and apparel industry. The import deregulation of some essential raw materials, trims, and accessories will help the apparel manufacturers become more competitive, especially in export markets.
Budget Reaction from Kumar Rajagopalan, CEO, Retailers Association of India (RAI)
The administration is trying to blend populist concepts with policy achievements. RAI appreciates the focus placed by the administration on improving the lot of middle-class and rural residents. Increased disposable income and increased spending will result from policies like expanded standard deductions, larger personal income tax exemption limits, and financial support for farmers. We anticipate that this will boost overall economic growth and stimulate a rise in consumption. Discounted taxes on gold, precious metals, and cell phones will also be very beneficial to these companies, particularly around the holidays.
The government’s commitment to job support and skill development, which includes initiatives for youth employment and skill development, is another commendable aspect of the budget. These initiatives will ensure that the workforce in the retail sector is ready for the future.
The budget’s emphasis on MSMEs and startups, which includes initiatives like expanding loan availability and eliminating the angel tax, makes it easier to realize their potential. Additionally, the urgent needs of the hour—tax compliance and simplification—have been met. Additionally, the Employment Linked Incentive, which allows enterprises to earn reimbursement of up to ₹3,000 per month for two years against their EPFO contribution for each additional employee, is a positive step.
The establishment of working women’s hostels and creches in collaboration with the industry is a critical step in supporting women who work in the retail sector. Urban development’s emphasis on developing infrastructure related to retail is a significant advancement.
