The Cotton Textile Export Promotion Council has urged the Centre to include cotton yarn in the list of 410 items selected for interest subvention.
Sunil Patwari, Chairman, Texprocil, said the Budget had increased the allocation under interest equalisation scheme by 23 per cent to ₹2,932 crore against ₹2,376 crore made last year. This will support exporters, particularly the MSMEs, on the back of rising interest rate trend. However, he appealed to the government to include cotton yarn among the list of 410 items which are eligible for interest subvention.
The increase in allocation for the Market Access Initiative Scheme from ₹160 crore to ₹200 crore for next fiscal will help showcase the Indian textiles in global markets, he added.
Relief for MSMEs
The reforms announced in the Budget will bring major relief for MSMEs in the textile sector, helping them to steadily compete in the global markets, he added.
The move to create new tariff lines for several products including cotton will facilitate trade. Similarly, the productivity of Extra Long Staple Cotton shall be enhanced through a cluster-based and value chain approach adopted by the government through Public-Private Partnerships will mean form collaboration between farmers, state and industry for input supplies, extension services, and market linkages, he added.
The steps taken to minimise regulatory compliance burden will improve Ease of Doing Business for industry, he said.