Category: General
Country: India
Region: Asia
By Siliconindia
20th January 2025, 09:43:29 AM IST
The textiles ministry may see a 15% increase in its budget allocation for FY26, rising to approximately Rs 5,080 crore. This includes a significant 33% boost for the Production Linked Incentive (PLI) scheme for textiles, with its allocation expected to climb from Rs 45 crore to Rs 60 crore. The final announcement will be made by Finance Minister Nirmala Sitharaman in the Union Budget 2025-26 on February 1.
The government launched the PLI scheme for textiles in 2021, with an outlay of Rs 10,683 crore over five years, to promote the production of man-made fibre (MMF) apparel, MMF fabrics, and technical textile products. This initiative aims to help the textiles industry scale up and compete globally.
An official stated, “We have ambitious targets for the textiles sector and are exploring measures to encourage domestic manufacturing. Some initiatives may be announced in the budget”.
India has set a goal to reach $600 billion in textiles exports by 2047, alongside expanding the domestic market from $110 billion in 2022 to $1.8 trillion. Textiles exports for April-December FY25 stood at $26.6 billion.
Despite these aspirations, the country relies heavily on imports of advanced textiles machinery like auto-corners, knitting machines, and synthetic dyeing equipment. The Confederation of Indian Textile Industry chairman, Rakesh Mehra, has suggested an interest subsidy of 7% for at least 10 years to promote local machinery manufacturing.
Additionally, machines for technical textiles, including spun lace, spun bond, mask production, and special fibre processing, are also imported, highlighting the need for domestic production capabilities to reduce dependency and boost competitiveness.
Courtesy: Siliconindia.com
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