Union Minister of Finance Nirmala Sitharaman presented the Union Budget 2020-21 in Parliament today (1.2.2020). In a press release issued today, Raja. M. Shanmugham, President, TEA said he welcomed the Union Budget 2020-21 and noted it is a people oriented budget, particularly to women. He appreciated the government focus on three aspects, Agriculture and farmer welfare, wellness and Education and Skills. He said the measures announced in the Budget will help for overall development of economy
The allocation of Rs.100 Lakh Crore for investment in infrastructure will help to reduce the logistics cost as of now the poor logistics is one of the hindrance factors for attaining the export competitiveness by our units.
While welcoming the announcement on proposal of setting up National Technical Textile mission with an out lay of Rs.1,480 Crores for a four per annum will boost the manufacturing of Technical Textiles in our country. He also welcomed the launching of a new scheme NIRVIK to achieve higher export credit disbursement, mainly to support small exporters. He further said invoice based loan could be obtained from NBFC to the MSMEs will benefit to get support in time.
He lauded for allocation of Rs. 27,300 Crores for the promotion of industry and Commerce development to fulfill the PM’s vision to make every district a export hub will help to promote exports.
The Government decision to ask RBI to consider for extension of MSME restructuring till 31.03.2020 is the need of hour to bail out the struggling MSMEs in Tirupur to come out of the ongoing crisis and will help them to sustain in the business, which has been requested by the association.
Raja. M. Shanmugham said the announcement of digital refund of duties and taxes of Centre, States and local to exporters from this year will help to reduce time taken to refund the amount.The removal of dividend distribution tax and rationalization of personal income tax are bold steps and will help across the board.
The Government decision to impose rule of origin and safeguard measures will help to eliminate the goods coming from the countries which enjoy duty free status and we hope the Government has considered our representation to restrict the flooding of RMG goods from the countries like Bangladesh.
The allocation to the Ministry of Textiles is Rs. 3,514.79 Crores in the current Budget against the allocation of Rs. 4,831.48 Crores in the 2019-20 Budget.
Shri. Raja. M. Shanmugham mentioned that for ATUF Scheme, the fund allocation is only Rs. 761.90 Crores when the pending claims to the industry is to the tune of Rs. 8,500 Crores and he felt that this will not attract the industry to go for modernization and hope the Government will consider and address the issue.
This is in favour of publication.