Textile & Fashion

TEXPROCIL Chairman, Shri Ujwal Lahoti Welcomes the Union Budget 2018 With Hopes

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In the words of Shri Ujwal Lahoti, Chairman, The Cotton Textile Export Promotion Council, the budget is highly growth oriented, all inclusive and efficient. A comprehensive package amounting to Rs 6000 crore has been approved for the textile sector by the government in the year 2016 for boosting the made up and apparel segments. The Union Budget 2018 came up with a proposal of offering Rs 7148 crore to the textile sector for the year 2018- 2019. Mr Lahoti, welcomed the budget hoping that the hike in the funds allocated for this sector will also cover fabrics within the ROSL scheme.

The budget eventually raised the financial outlay pinned to the comprehensive package allotted for the textile sector. Shri Lahoti believes that this will help in the product and exports promotion within these 2 labor intensive sectors. For the coming 3 years, the government will offer 12% of the total wages of each new EPF employees for all sectors. Adding on to this is the provision of fixed term employment for all the sectors. According to Shri Lahoti, all these measures will help in employment generation and also contribute towards the ‘Make In India’ project.

For incentivizing women employment within the formal sector and enabling higher wages for them, the Budget has also offered proposal for making amendments within the Miscellaneous Provisions Act and Employees Provident Fund to cut down the contribution of women employees to about 8% for the initial 3 years of employment against the prevailing rate of 10 to 12% without making any changes in the employers’ contribution. This measure has been welcome by Shri Ujwal Lahoti for increasing women employment opportunities in the textile sector, mostly in that of made ups and garments.

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