Union Budget 2024-25: Boosting Textile Sector Growth and MSME Empowerment

Brijendra Kagzi, CMD of Shrijee Lifestyle Pvt. Ltd, has endorsed the Union Budget 2024-25 for its focus on employment, skill development, and MSME growth. He suggested improvements like interest subvention, import duty adjustments, and GST rate reductions to further support the textile industry.

PNN Mumbai (Maharashtra) [India], July 26: Brijendra Kagzi, CMD of Shrijee Lifestyle Pvt. Ltd, lauded the Union Budget for 2024-25, emphasizing its growth-centered approach and potential to bolster employment, skill development, and MSME expansion.

The budget's employment-linked incentives and internship programs are predicted to spur job creation in the textile sector, a major employment generator in manufacturing. Additionally, the proposed Credit Guarantee Scheme aims to help MSMEs secure funding without collateral or third-party guarantees, fostering growth in this crucial sector.

Kagzi identified several areas for improvement, advocating for an interest subvention of 2-3% to align MSMEs with larger corporations that benefit from lower funding rates. He also suggested introducing a minimum import duty of Rs 25 per square meter on cheaper Chinese fabrics to protect the local industry and encourage local sourcing.

Kagzi highlighted the need to rectify the GST inverted duty structure, recommending refunds for accumulated credits and streamlining the GST on textile machinery and supplies by reducing the rate from 18% to 5%. This adjustment could enhance India's competitiveness globally. Furthermore, Kagzi called for reducing the 18% GST on digital printing machines and inks to 5% to help local fabric units compete with Chinese manufacturers.

Expressing optimism, Kagzi hoped these changes would be addressed in the upcoming GST council meeting, complementing budget proposals to create a conducive environment for significant growth in the fabric processing segment, a vital part of the textile value chain.

(With inputs from agencies.)