In a significant move ahead of Budget 2025, India's textile sector have to focus on leveraging the changing global supply chain environment, influenced by the persistent political turmoil in Bangladesh. As global retailers rush to secure new suppliers due to the persistent crisis in Bangladesh, industry experts and stakeholders are calling on the Indian government to implement substantial budget reforms to rejuvenate the textile industry.
To accomplish this, they promote various essential steps, such as lowering import tariffs, streamlining import processes, providing interest subsidies, and offering tax incentives.
"Indian domestic raw material prices are significantly higher than international prices. While competitors like Bangladesh, and Vietnam have free access to such raw materials, India has imposed QCO on MMF fibre/yarn, which is acting as a Non-Tariff Barrier on the imports of such raw materials and thus affecting their free flow. It has resulted in a shortage of some specialized fibre or yarn varieties which has also affected domestic prices," says Rakesh Mehra, Chairman, Confederation of Indian Textile Industry (CITI).
CITI anticipates that the government will guarantee the accessibility of raw materials at prices that are competitive internationally. CITI supported tax relief for MSME manufacturing units in the textile industry. The organization stated that the government could eliminate BCD from all cotton types to guarantee the accessibility of cotton at prices that are competitive globally.
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