With financial assistance, tariff reductions on essential inputs, and incentives for domestic production, India hopes to strengthen its textile and apparel sector in the budget for next month, according to two Government sources. Exporters said that the ongoing political unrest in Bangladesh, has forced international merchants to look into other options, such as importing clothing from India.
Mithileshwar Thakur, the secretary general of India’s Apparel Export Promotion Council, stated that Indian exporters have been struggling to handle the surge in export orders in recent months, as numerous US companies are seeking alternative suppliers.
An estimated 45 million people are employed in India’s textile industry, and according to a Government source familiar with the talks, the Government is thinking of raising the textile ministry’s budget allocation for 2025- 2026 by 10 per cent- 15 per cent from the present Rs. 4,417 crore (US $ 511 million).
According to the source, the Government may also increase the amount allotted to production-linked incentives for the textile industry from US $ 5.2 million for the current fiscal year to approximately US $ 6.94 million.
The Government provides tax incentives and other benefits to companies that opt to manufacture domestically under this scheme. According to a second Government source, tariff reductions on raw materials like polyester and viscose staple fiber, as well as on textile machinery, are also being considered.
