Tiruppur Exporters' Association (TEA) president Raja M Shanmugham has welcomed the Union Budget 2020-21 presented by finance minister Nirmala Sitharaman in Parliament today.

Stating that the budget is a people-oriented one, he appreciated the government's focus on three aspects—agriculture and farmer welfare, wellness, and education and skills.

He said the measures announced in the budget will help for overall development of economy. "The allocation of ₹100 lakh crore for investment in infrastructure will help to reduce the logistics cost as of now the poor logistics is one of the hindrance factors for attaining the export competitiveness by our units," he added.

Welcoming the announcement on proposal of setting up National Technical Textile mission with an out lay of ₹1,480 crore, he said it will boost the manufacturing of technical textiles in our country. He also welcomed the launching of a new scheme NIRVIK to achieve higher export credit disbursement, mainly to support small exporters. He further said that the step to give invoice-based loan from NBFCs will benefit MSMEs.

"The government's decision to ask RBI to consider for extension of MSME restructuring till March 31, 2020 is the need of hour to bail out the struggling MSMEs in Tiruppur," he said. Moreover, the digital refund of duties and taxes of centre, states and local bodies to exporters from this year will help to reduce time taken to refund the amount. Further, the removal of dividend distribution tax and rationalisation of personal income tax are bold steps and will help across the board.

Overall, the budget has allocated ₹3,514.79 crore to the ministry of textiles against allocation of ₹4,831.48 crore in 2019-20 budget. Of this, the fund allocation for Amended Technology Upgradation Fund Scheme (ATUFS) is only ₹761.90 crore, while the pending claims to the industry is ₹8,500 crore.

Published On : 01-02-2020

Source : Fibre 2 Fashion