The Textile Ministry is expected to get a marginal budget increase of 2.5 per cent for the fiscal year 2025, taking its allocation to Rs. 4,500 crore, people aware of the matter said, as per reports.
Compared to the current fiscal year’s allocation of Rs. 4,389 crore, the projected budget for the future fiscal year indicates an increase of Rs. 110 crore. While the Government aims to position India as a global player in textiles, the marginal uptick in allocation may pose a challenge to the Ministry in utilising its budget effectively.
The Ministry was allotted Rs. 11,059.81 crore in fiscal year 2021–2022, and in 2022–2023 that amount climbed by more than 10 per cent to Rs. 12,382 crore. Nevertheless, the Ministry’s revised budget projection was drastically slashed by 71 per cent, resulting in an outlay of Rs. 3,579 crore in 2022–2023.
According to one of the aforementioned sources, the Pradhan Mantri Mega Integrated Textile Region and Apparel (PM MITRA) programme will not be hampered by the slight increase in the budgeted allocation because its Rs. 4,445 crore spending is approved for a five-year period ending in 2027.
According to this source, the Government intends to seek an investment of Rs. 70,000 crore over the next five years in order to establish itself as a destination for textile sourcing and investment through seven PM MITRA sections. Additionally, the Government hopes to draw FDI through the PM MITRA programme as well as a number of other initiatives.
The garment and textile sector in India makes up 13 per cent of the nation’s industrial production, 2.3 per cent of its gross domestic product, and 12 per cent of its export earnings, which makes it a crucial industry. India holds a 4 per cent market share in the global textile and clothing sector.
