Textile 03-02-2022 Hits: 1401

The Northern India Textile Mills' Association (NITMA) welcomes Union Budget 2022-23

Textile 03-02-2022 Hits: 1401

NITMA

Textile 03-02-2022 Hits: 1401

03 February 2022, Mumbai:

Sanjay Garg, President NITMA welcomes the proposal of Union Budget 2022-23 as the Finance Minister has taken some prudent initiatives for MSMEs and India Inc for start-ups.

The tax concession period has been extended by one more year, which is a positive move. Likewise, a 15% tax has been decided for the newly incorporated manufacturing unit.

Sanjay Garg | President | NITMA

The period of incorporation has been increased by one more year to 31-3- 2024. This will further boost manufacturing activities.

He was of the view that the PLI in 14 Sectors to create 50 lakh new jobs and additional production of Rs 30 lakh Cr. Shri Garg stated that the proposal to reduce surcharge on cooperative societies to 7% from 12% for income between Rs.1 cr to Rs.10 cr is a welcome step.

He reiterated that incentives for startups period of incorporation extended by a year to 2023 to avail of tax benefits and for corporate extension also granted for new companies to set up manufacturing facilities to 2024 from earlier 2023 will help the new start ups on the way.

Besides Section 115BAB the date of setting up business increased by one year to 2024 is indeed help the industry.

He also started that 25,000 compliances have been done away with and 1486 union laws have been repealed as announced by the Finance Minister will reduce litigation and industries would concentrate on business.

He appreciates that PM Gati shakti driven by 7 engines as proposed by Finance Minister will give boost to the infrastructural development and will pull forward the economy and will lead to more jobs and opportunities for the youth. He also thanked the Government for taking several steps to ease the compliance burden on honest taxpayers.

President , NITMA Shri Sanjay Garg then touched briefly upon the positive measures in Budget 2022—23 for textile sector:

• Budget Allocation for Textile Sector for year 2022-23 stands at about Rs 12,382.14 crore which is about 8.1% higher than the revised budget allocation of 2021-22 which stands at about Rs 11,449.32 crores.

• Budget allocation during 2021-22 initially was Rs 3,631.64 crores but it was later revised to Rs 11,449.32 crores mainly due to increased allocation for “Procurement of Cotton by Cotton Corporation of India (CCI)” under Price Support Scheme” from Rs 136 crore initially to Rs 8,439.88 crores”.

• For year 2022-23, Government has allocated about Rs 9,243.09 “Procurement of Cotton by Cotton Corporation of India (CCI) under Price Support Scheme” which is about 9.5% higher than revised allocation of last year.

• In the present budget Government has allocated about Rs 133.83 crores for “Textile Cluster Development Scheme” and hence the total budget allocation for “Research and Capacity Building” in textiles increased by 73.4% to reach about Rs 478.83 crore in 2022-23 as compared to revised budget allocation of Rs 276.10 crore in 2021-22.

• This year Government has not allocated any fund towards “Powerloom Promotion Scheme”. Last year Rs 47.88 were allocated towards the same.

While summing up Shri Garg stated that the budget allocation for procurement of cotton by CCI under Price support scheme was Rs.136 cr in 2021-22 which has been revised to Rs.8439.88 in 2021-22 and further enhanced to Rs.9243.09 cr in Budget 2022-23 which is a welcome step and the steep increase in international cotton prices and consequential domestic cotton price has fetched the Indian cotton farmer’s high revenue for their produce during the current session.

The industry was expecting a removal of import duty on cotton as measure to control cotton prices, which was not met, he stated.

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