Proposals announced in Budget 2023-24 could not satisfy the Indian textile industry because it had high expectations amid slower demand and costlier raw material. However, the industry leaders expect that the budgetary measures will contain inflation and provide relief for consumers, which in turn will boost domestic demand for textile products.

Sanjay K Jain, Managing Director, TT Ltd and Chairman Indian Chamber of Commerce’s (ICC) National Expert Committee on Textiles told Fibre2Fashion, “As expected, there was nothing for the textile industry in the Budget excepting few provisions. More disposable income in hands of consumers due to tax cuts and measures to tame inflation will boost consumption.” Separate HS Codes for ELS cotton indicates the intention of the government to differentiate import duty on the natural fibre.

Proposals announced in Budget 2023-24 could not satisfy the Indian textile industry because it had high expectations amid slower demand and costlier raw material. However, the industry leaders expect that the budgetary measures will contain inflation and provide relief for consumers, which in turn will boost domestic demand for textile products.

Durga Prasad Chalavadi, Chairman and Managing Director, Sai Silks Kalamandir Ltd said, “Budget 2023-24 proposals will significantly increase consumption. It will put more money in the hands of the people through relief in Income Tax. It is a great development. A reduction in income tax should increase the disposable income of households and promote consumption.” He added that all facets of society – women, the middle class, and professionals alike – will profit from the government’s commitment to promoting growth and welfare-oriented measures.

Arvind Mediratta, MD & CEO, Metro Cash & Carry India, said, “The much-awaited income tax slab change is a huge tax relief for the salaried middle class and will help boost spends and consumption. Lot of allocations have been made for the rural sector. This will spur consumption and boost growth towards achieving $5 trillion economy. The revamped credit guarantee for MSMEs and additional infusion of ₹9,000 crore is great development for MSMEs that are still recovering from the impact of pandemic.”

Bharat Agarwal, Co-founder of Qua Clothing, said, “The government will be boosting cotton growing technologies. This will, in turn, boost cotton productivity, which is a major requirement as cotton prices doubled in the last couple of years. This resulted in textiles and apparels having a significant share in the inflation.” With the changes in income tax slabs, people will be able to save more in tax. This will result in increase in domestic consumption. The premium and luxury brands will get a significant boost, he added.

Vinod Gupta, Managing Director, Dollar Industries Limited, said, “I welcome the relief to MSMEs which assures a boost to manufacturing and infrastructure development. It is heartening that Budget 2023-24 is a significant step towards making India one of the top economies of the world with thrust on overall digitalisation and enhanced use of artificial intelligence.”

Fibre2Fashion News Desk (KUL)