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Budget 2022

Budget 2022: Pricing and taxation must be effective in the textile industry

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Q. How has your sector handled the challenges of recent years, and how is it still struggling to deal with them? What strategies did you use to bounce back?
When it comes to the garment business, we faced challenges because as we know weddings and other events did not happen and people even did not celebrate the events. So, this is one of the big challenges in the textile industry actually facing and the cope that we have is we are trying to do whatever the best we can do for our clients or for our customers for example that we are recently starting to recycle your old clothes and make them in a new way. Secondly, we have started giving our outfits on rent. So, when we are renting the outfit the rent price of the outfit is ¼th of the actual price of the outfit.

Q. How do you think the government can help support the entire sector through measures or packages?
We feel that as we know the GST is increased from 5% to 12%. Now, we have to cut down our margin on the sales part. This is going to affect our business a lot when we talk about the budget happening soon. I think the government should really think about this and they should get a bit less percentage tax in terms of the textile industry.

Q. How confident are you that industry and business will grow in 2022?

Last two years, 2020 & 2021 were the darkest years for everyone. We hope 2022 is going to be a bit brighter year. So, in terms of business yes definitely the growth has started as you guys can see like again covid is back, but we are not really getting affected that much. But yes, somewhere, or other we are but I personally feel that yes, the business would grow.
Q. His take on current government policies that are helping the industry and those that are not?
When we talk about the current take, the government is not trying that much, I would say in terms of the textile industry. The textile industry is still facing big issues somewhere or the other in terms of costing, taxation and other things. So yes, I think the budget really goes well so this can become a very bit easier task for us.

Q. How will your organization grow in 2022 based on the most exciting trends in your sector?
The exciting trend in our sector is being not size could be your range brand. I think in covid everyone is becoming plus size, so we have too many exciting things happening around in terms of the plus-size industry and in terms of plus size growth in India. So yes, we have different kinds of trends that are going to come in the year like people who have some of the other blockages and say that they won’t be able to look smart or sassy. So yes, the trend is going to be something different and I hope 2022 goes well for everybody.
 
Q. What are your expectations for Budget 2022 and what suggestions do you have?
In the upcoming budget, I expect the government to keep its focus on incentivizing investments across the textile value chain. According to the rating agency, India is on the verge of a potential boom cycle in the global textile industry. As the world’s largest textile market, China is expected to lose market share in the near future. India is one of the possible benefactors of this transition in the short to medium term. More emphasis is anticipated on the man-made fiber (MMF) value chain, clothing, and technical textile areas, which offer huge development prospects in the global trade, and where India has been behind so far.
 
A number of policy initiatives have been announced, including the PLI program, the rebate of state and central taxes and levies (RoSCTL) scheme has been extended to Clothing and cosmetics for three years, the announcement of duty-free shopping and Taxes on Exported Products (RoDTEP) based on different segments of the textile industry, and notification of seven textile parks under the PM-MITRA Scheme, have been Implemented in line with the government’s thrust on Make in India for the World. While the policy measures are all positive moves, efficient execution is still required, which necessitates proper budgetary provisioning.
 
Further, with the implementation period of the ATUFS completing in March 2022, the extra time of the same or the announcement of a new scheme, particularly for the down stream segments or for captive renewable power capacities will encourage investments and enable the companies to minimize their carbon footprints while being more cost-efficient.
With Inputs from:
Somwya Sharma, Founder – Not Size Zero
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She has been there and done that. After graduating from Delhi University, she completed her diploma in Journalism from Bhartiya Vidya Bhawan, Delhi. Down the line, she completed her internship with National Herald Newspaper successfully,, and went on to Join Mainline Business daily, Business Standard. She also dabbled in image management and brand consultancy. She is a prolific writer on lifestyle entertainment, branding, lifestyle, travel, and politics.
Contact her at [email protected]