NEW DELHI: It is anticipated that this budget will also benefit the textile industry. Though it’s a part of the government’s production linked incentive scheme (PLI), the industry expects major focus on certain areas where its growth can be obtained at its optimum. According to the ET Now report, the industry is under pressure. It also requires a significant financial boost. Where they seek a reduction in import duties to make it more competitive. They believe that, cotton being a primitive crop, should have import duties removed. What more does the textile Industry expects from Budget is what we are discussing about.
The industry expects an increase in the incentive on the export duty. To increase exports, the road tables game implemented by the government should be expanded so that they can export in large volumes. According to reports, our government’s incentive for textile exports is lower than China’s incentive for heir textile exports. The industry anticipates that they can grow faster than China if this is taken into account in the budget. They also expect that no duty should be imposed on fiber and cotton, which are the basic raw materials of textiles.
MCX (Multi Commodity Exchange of India Limited) is a commodity exchange based in India that offers trading in various commodities, including cotton. MCX provides a platform for buyers and sellers to trade cotton.
The textile industry reacted to the ‘wide fluxes’ occurring in MCX cotton trading. According to them, recently MCX stopped forward trading in cotton. They wanted to continue that, as forward trading of yarn prices used to shoot up Rs 10-20 per kilo in a day.
Source: ET Now