In the lead-up to the presentation of the Interim Indian Budget for fiscal 2024-25 (FY25), Indian textile start-ups expect finance minister Nirmala Sitharaman to introduce a scheme aimed at incentivising niche technologies within the textile industry. The recommendation underscores the need for financial incentives to support the entire lifecycle of these technologies, from research through to commercialisation.
Dr. Anasuya Roy, founder CEO of Nanosafe Solutions, told Fibre2Fashion, “The Indian textile industry currently imports niche functional technologies like antimicrobial, biodegradable, and weather-resistant from developed countries, although there is no shortage of brains for developing these technologies in India. The fear of competition, in terms of marketing firepower from these giant foreign technology companies, often intimidates Indian businesses from taking a step forward. There is a need to propose a scheme in the budget in which import substitution products will be monetarily incentivised from research to commercialisation.”
She said that MSMEs and start-ups contribute massively to India’s $5 trillion economy dream. To achieve this ambitious target, partnerships between small-scale companies and public companies can serve as a significant stepping stone. Large and mid-sized companies can be looped together with a pool of relevant smaller companies, incentivised with tax/indirect monetary benefits for using Make-in-India products.
Dr. Roy commented, “Considerable importance should also be given to Indian textile regulations vis-à-vis international regulations, especially in the context of the Indian domestic market. Most regulations in niche textile functional additive markets are regulated by European and US certification agencies, who charge a significant sum per annum as certification fees. India still lacks a strong foundation for a certification and regulation agency. The upcoming budget should propose to make domestic agencies stronger.”
The Interim Union Budget for fiscal 2024-25 will be presented in Parliament on February 1, 2024. Despite several expectations from various sections of the country, it will be only a vote of account because of the Lok Sabha elections in April to May 2024. A full-fledged budget will take place after the elections and the formation of a new government.
The upcoming budget is expected to reaffirm the government's dedication to a long-term growth strategy and its commitment to sustainable development. Finance Minister Nirmala Sitharaman is expected to maintain her focus on critical infrastructure development. Key policy reforms, such as Atmanirbhar Bharat (self-reliant India), Make in India, and the Production-Linked Incentive (PLI) scheme, are likely to receive continued emphasis.
Additionally, the budget is expected to highlight sectors such as power, utilities, and renewables. With an eye towards generating more job opportunities, it is probable that the budget will continue to support labour-intensive sectors such as textiles and agriculture. Sitharaman is expected to give importance to government expenditure, fiscal deficit, and personal taxation. She might also increase the budget for the agriculture sector after eight years of low growth of 1.8 per cent in fiscal 2023-24.
ALCHEMPro News Desk (KUL)
Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!
marketing@alchempro.com
