Ahead of year ending, another big update revealed regarding Union Budget 2025. To enhance the garments and textile industry, it is essential that the Production Linked Incentive (PLI) scheme be applied across the whole sector. Currently, the government has only applied this scheme to synthetic fiber. Should the garments and textile sector receive PLI support in the budget, it will incentivize investment.
Through the joint venture, every foreign company will step up to partner with local production units in this industry. This will boost competition and enhance job opportunities. In recent days, numerous proposals have been made to the government that ought to be enacted.
What is the industry’s requirement?
Rajiv Bansal, national vice-president of the Indian Industries Association (IIA), stated that exporters must obtain bank loans to meet the order requirements. In this context, the government implemented an interest subvention scheme to provide relief on interest, which concluded on September 30. It ought to remain in effect for an extended duration. The rate should be lowered to five percent as it was previously.
He mentioned that for several advancements in the sector, the former administrations had established the Technology Upgradation Fund Scheme, which provided subsidies for new equipment, but this was halted. This plan ought to be reinstated as well.
Motivations for additional sales
Chairman of the Noida Apparel Export Cluster, Lalit Thukral, stated that the government supports local businesses and organizations in establishing or expanding manufacturing facilities to boost production, offering incentives based on increased sales. The government is currently considering all proposals to enhance the sector.
