With no specific announcement in the Union Budget that will directly benefit the textile and clothing sector, the industry has said steps to support MSMEs and attract investments will benefit the textile industry too. However, there should be measures to control raw material prices, the industry associations said.

According to Southern India Mills Association, steep increase in international cotton prices and consequential domestic cotton price has fetched the Indian cotton farmers high revenue for their produce during the current season. But, this has also impacted the cotton textile value chain. India has started achieving a substantial growth rate in the domestic and international cotton textiles and clothing market that is likely to fuel the cotton consumption by 15% to 20% during the current season (October 2021 to September 2022) resulting in shortage of cotton. The Union Government should consider the demand of exempting ELS cotton and sustainable cotton from the levy of 11% Import Duty.

The Cotton Textiles Export Promotion Council expressed concern that made ups sector that contributes significantly towards exports has been left out of the facility of duty free imports of specified goods by bonafide exporters. The government should re-consider the Customs Duty imposed on cotton.

The Confederation of Indian Textile Industry said certain exemptions for advanced machineries that are not manufactured in the country will continue and help the textile sector as the domestic textile sector depends on state-of-the-art textile machineries.

Export of fabrics by powerloom units are expected to cross $ 8.8 billion, which is higher than the target. The Production Linked Incentive Scheme will attract investments and the announcements in the budget will help growth of the weaving sector, said the Powerloom Development and Export Promotion Council in a press release.

Reinstating duty free facility for import of trimmings and embellishments will benefit garment exporters as they source these from different countries and with sharp deadlines. With measures to boost investments, the Production Linked Scheme will see more traction, according to the Apparel Export Promotion Council.

The Tiruppur Exporters’ Association said review of Customs exemptions and tariff simplification will benefit protect the domestic garment industry. The budgetary allocation for Amended Technology Upgradation Fund Scheme should be enhanced from ₹ 650 crore to clear arrears under the Scheme.

The Cloth Manufacturers’ Association of India said removal of Import Duty on embellishments, trimmings, buttons, etc., will make apparel exports more competitive. The apparel industry will stand to benefit with extension of the Emergency Credit Linked Guarantee Scheme. However, the enhanced outlay for the Scheme should be extended to the retail sector too.

The domestic hosiery manufacturers expressed disappointment as the budget had no announcement to bring down the raw material prices or to encourage the hosiery sector, said the South India Hosiery Manufacturers Association.

According to the Indian Texpreneurs Federation, the industry will get better market intelligence with use of technology to assess crops, especially cotton. Extension of tax incentives for new manufacturing units for one year will motivate industries to bring in capex.