Budget 2017-18 Brings Cheers To Indian Textile & Apparel Industry
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Budget 2017-18 Brings Cheers To Indian Textile & Apparel Industry
Mumbai, India | Wednesday, 1st Feb. 2017  | By Textile Excellence
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Budget Allocation for India’s Textile Ministry

 

  Rev. Budget          2016-17 Budget 2017-18
In Rs Crores or Rs 10 Million
Total Budget Allocation  6286.1 6226.5
Amended TUFS 2610 2013
Procurement of Cotton by CCI under Price Support Scheme 609.75 0.01
Handloom Development Programme 770 604
National Handloom Development Programme 150 146
Handloom Weaver Comprehensive Welfare Scheme 30 32
Yarn Supply Scheme 260 242
Handloom Mega Cluster Development 55 44
Handicraft Development Programme  345 289.7
Development of Woollen Textiles 23.01 32
Development of Silk Textiles 497.5 575
Development of Jute Industries 110.93 97.52
Powerloom Promotion Scheme 121.03 161.76
Integrated Scheme for Powerloom Sector Development 36.03 34.42
Scheme for In-situ Upgradation of Plain Powerlooms 48 68.31
Powerloom Mega Cluster 15 25
Textile Infrastructure Development 506 1860
Integrated Processing Development Scheme 28 30
Scheme for Integrated Textile Parks (SITP) 51 50
Remission of State Levies (ROSL) 400 1555
Pradhan Mantri Paridhan Rojgar Protsahan Yojna ... 200
R&D, Skilling and Capacity Building 351.38 272.99
Integrated Scheme for Skill Development 221.9 173.99
R and D Textiles 15 20
National Institute of Fashion Technology (NIFT) 62 60
North East Textiles Promotion Scheme 255.98 245
NER Textiles Promotion Scheme 220.98 220
Scheme for Usage of Geotextiles in North East 20 15
Scheme for Promoting Agro Textiles in North East 15 10

 Note: Only fund allocation to major heads are shown

 

Total budget allocation to the Textile Ministry is at Rs. 6226.5 crores for the year 2017-18 against last year’s revised allocation of 6286.1 crores. Budgetary allocation for Powerloom, Silk and Wool textile sectors increased while handloom and handicraft sector were allocated sizable amount of the fund.

 

BUDGET IMPACTS:

 

1. Technology Up-gradation Support:

Government’s flagship technology up-gradation scheme ATUFS receives an allocation is Rs. 2013 crores for 2017-18. This is a welcome move and provides impetus for investment in the textile and apparel sector.

 

Scheme for in situ up-gradation of plain power looms receives a budget of Rs. 68.31 crores which is a big budgetary boost form Rs. 48 crores last year. Under this scheme, power loom owners would get government’s support to upgrade weaving technology without replacing the whole loom.

 

2. Incentives to boost Competitiveness, Employment and Skilling:

Allocation under Remission of State Levies has been increased sizably to Rs. 1555 crores. This scheme includes the refund of State taxes to garments exporters to make the industry competitive and to boost employment in this Sector.

 

Fund allocation under Pradhan Mantri Paridhan Rojgar Protsahan Yojna (PMPRPY) is Rs 200 crores. This new scheme provides the Employee  Pension Scheme contribution of 8.33% of the employers for all new employees  enrolling  in  EPFO  under  PMRPY  for  the  first three  years  of  their  employment. Again, this is to boost employment in textile sector by incentivizing the employers and improving competitiveness.

 

Integrated Scheme for Skill Development for the textile sector receives Rs. 174 crores which is operational for last several years for under skilled factory workers.

 

3. Other Measures:

Basic Custom Duty on Nylon mono filament yarn (for use in long line system for Tuna fishing only) reduced to 5% (from earlier 7.5%)

 

Textile and Apparel industry would benefit from Trade Infrastructure Export Scheme with an allocation of Rs 3.96 lakh crores.

 

Objective of doubling farmers' income, skilling of youth, development of Infrastructure to provide end to end solution by integrating rail, road, air and sea would greatly benefit the textile industry that is spread across the nation.

 

Higher income and spending by rural India to stimulate consumption of textiles and apparels. Currently, domestic demand for textile has been low post demonetization. 

 

Reduction of corporate tax by 5% to MSME (turnover below Rs 50 crores) will benefit textile and apparel industry as majority of the enterprises fall into this category. Further, additional allocation to the banks for NPA accounts, cashless transaction, labour reforms and relaxation of FDI norms by abolishing Foreign Investment Promotion Board (FIPB) would also benefit the industry.

 

4. Union Budget 2017 - 18 Quick Look

Plan Expenditure: Rs. 945078 crores

Non-Plan Expenditure: Rs. 1201657 crores

Total Expenditure: Rs. 2146735 crores

Fiscal Deficit: 3.2%

Revenue Deficit: 1.9%

Current Account Deficit - 0.1%

 

GDP  for  Budget Estimate for  2017-18  has  been  projected  at Rs.16847455  crore  assuming  11.75%  growth  over  the  Revised Estimates of 2016-17  (Rs. 15075429 crore)

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