Textile Sector Highlights from the Union Budget 2024

Union Budget 2024: What’s in Store for the Textile Industry?

Every year, the Union Budget is a pivotal moment for India's economy, setting the financial agenda and priorities for the nation. But what exactly is the Union Budget? It is the annual financial statement presented by the Government of India, detailing its revenue and expenditure for the upcoming financial year. This crucial document is not just about numbers; it shapes policies and reforms across various sectors.

On July 23, 2024, Finance Minister Nirmala Sitharaman presented the Union Budget for the fiscal year 2024-25. The textile industry, a cornerstone of India's economy, received a notable mention and a substantial increase in funding. Let’s delve into the key highlights and what they mean for the industry.

Increased Budget Allocation for Textiles

The Union Budget 2024-25 has allocated ₹4,417.09 crore to the textile sector, a significant increase from the previous year's revised estimate of ₹3,443 crore. This ₹974 crore boost is expected to drive growth and innovation within the industry.

Focus on Research and Capacity Building

One of the standout aspects of this year’s budget is the emphasis on research and capacity building, with allocations jumping to ₹686 crore from ₹380 crore. This investment underscores the government’s commitment to fostering innovation and enhancing the sector’s capabilities, which could lead to breakthroughs in textile technology.

Boost for Traditional Handicrafts

Traditional handicrafts, a vital part of India’s cultural heritage, have received a funding increase of 38%, with the National Handicraft Development Programme's budget rising to ₹236 crore. This increase aims to support initiatives that enhance artisans' skills, improve market access, and encourage innovation in traditional crafts.

Silk Promotion and Development

India, as the world’s second-largest producer of silk, has seen a rise in budget allocation for silk promotion to ₹900 crore from ₹875 crore. This boost will support the sericulture industry, which employs approximately 9.2 million people, helping it meet high domestic demand and maintain global competitiveness.

Investment in Technical Textiles

The National Technical Textiles Mission has witnessed a remarkable 120.59% increase in funding, jumping to ₹375 crore. Technical textiles, known for their performance and functionality, are crucial in sectors like aerospace, healthcare, and automotive. This funding aims to enhance India’s competitiveness in these high-tech fields.

Development of Geotextiles

The budget for geotextiles and related schemes, including PM-MITRA and handloom protection, has been increased by 45.6%, totaling ₹3,866 crore. This substantial investment highlights the government's focus on regional development and infrastructure, particularly in the North-East.

Conclusion

The Union Budget 2024-25 presents significant opportunities for the textile industry, with increased funding poised to drive innovation, support traditional crafts, and enhance global competitiveness. These changes signal a promising future for the sector, with potential benefits for all stakeholders involved.

As the textile industry gears up for these new developments, it will be interesting to see how these budget allocations translate into tangible growth and advancement. What are your thoughts on these changes? How do you see them impacting the future of textiles in India?

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