Textile & Fashion

Insufficient Fund Allocation Worries the Textile Sector

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Insufficient fund allocation for maximum focus deserving areas of the textile sector in the Union Budget is likely enough to cut down the rate of growth of the business opportunities, especially in clusters such as Tirupur- a region that is highly struggling to retain its competency within the global market. A more detailed analysis of the Union Budget 2018-2019 shows that just 24 percent of the total planned outlay for the textile sector was slotted for the developmental activities along with the remaining fixed towards other costs like the remission of State Levies, Amended Technology Upgradation Fund Scheme (ATUFS) and procurement of cotton.

It is indeed an important factor that the fund allocated for the development activities in the textile sector has been reduced to Rs 1680 crore from Rs 2051 crore in the Union Budget 2018- 2019. This allocation has to be more inclined towards the development activities since the textile industry is performing under huge monetary pressure on the account of some modified schemes for repayment of the state and central taxes after the implementation of GST, as quoted in the words of S. Dhananjayan- Senior CA.

According to industrialists and template allocation technocrats, rather than paying attention on template allocation of the funds, attention must be given upon capacity building initiatives, implementation of those lean manufacturing practices, upgradation of the overall textile infrastructure rather than just the machinery and on research being conducted at cluster level.

If the same is done effectively, it will help in effective development of the textile sector.

 

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