The upcoming Union Budget may see several measures such as tax relief and capital support to boost textile exports as well as to make prices of Indian products more competitive, CNBC-Awaaz learns through sources.
Among the measures being considered is a removal or at least reduction in basic customs duty on imported organic cotton as well as long staple cotton, considered as the essential raw material for the apparel industry. Currently, both these product attract a 5 percent basic customs duty and an additional 5 percent duty.
In order to deter the cheap import of man-made fibre spun yarn flooding domestic markets, the basic customs duty can be raised higher from 5 percent right now to 10 percent, it is learnt.
A National Textile Fund is also being contemplated to support the MSMEs in the textile space, to ensure capital is easily available to fund technological upgrade and even offer strategic investment, CNBC-Awaaz reported.
A proposal is also being considered to offer capital subsidy for faster adoption of renewable energy.
Shares of Gokaldas Exports was trading higher by 3 percent at 11:40am, and other listed players like SP Apparels, Arvind and Welpsun India too were in focus based on the news report.
CNBC-Awaaz learns through officials it spoke to that the NDA 3.0 government is keen on doing 'landmark work' in the first 100 days, and textile sector - which employs the largest number of workers after agriculture - could benefit from policy initiatives.
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