Union Budget 2017-18 has given a major boost to textile infrastructure by increasing the allocation for building textile parks, incubation facilities, processing and development centres by increasing the provision from Rs. 506 crore to Rs. 1,860 crore. The increased funds will also be used for the Pradhan Mantri Rojgar Protsahan Yojana to promote employment in the sector.
However, the Government has cut down the budgetary allocation to the Amended Technology Upgradation Fund Scheme (ATUFS) from Rs. 2,610 crore to Rs. 2,013 crore. “Though there are no new schemes or programmes specifically for the textiles or garment industry, the Budget has several provisions that will help the sector to grow faster,” said Rahul Mehta, President, Clothing Manufacturers’ Association of India.
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It is pertinent to mention here that creation of more incubation centres in the country is a step taken to encourage domestic textile manufacturing which has lost market share to Bangladesh and Vietnam.
