The Union Budget 2018 that was presented by Arun Jaitley, The Finance Minister of the country on February 1st has been warm heartedly welcomed by the CMAI- The Clothing Manufacturers Association of India. According to the chairman, the proposal received by the budget for the textile sector is positive.
CMAI president Rahul Mehta in addition to this said that some provisions for the industry have to be made with the major focus being on the rural economy. This is inclusive of optimum fund allocation as it will help to push up the demand for adequate apparel in the country’s own market. Also the emphasis laid on the development of infrastructure and transportation of raw material at the domestic level has been welcomed by Mr. Mehta.
He conveyed thanks to the Finance Minster for allocation of more fund for some special schemes planned for the made up and apparel sector. Quoting the amount, the fund allocated for the fiscal year 2018-2019 is Rs 7.148 crore compared to Rs 6000 crore in the previous year. While enhancing the contribution of the government towards EPF of the new employees’ up to 12%, which is a luring element in this special package, it needs to be noted that the applicability of the same has been also raised to 3 years. It is believed that it will help in employment generation for the apparel industry.
In the words of Mehta, women employees engaged with the textile sector will be the ones enjoying the primary benefits hitched to this provision as the textile sector is by and large women employee centric.