Tirupur's textile industry expresses disappointment with the Union Budget 2024, claiming it caters more to corporates while neglecting the needs of small and medium enterprises that form 90% of the sector.
Tirupur: The Union Budget 2024 has been met with mixed reactions from the textile industry in Tirupur, with many expressing disappointment over what they perceive as a corporate-centric approach that overlooks the needs of small and medium enterprises (SMEs).
Muthurathnam, President of the Tirupur Exporters and Manufacturers Association, stated that while the budget is favorable for corporate companies, it lacks sufficient schemes for SMEs, which constitute 90% of the industry. "Our requirements have not been met," he said, pointing out the absence of plans to assist struggling companies in obtaining loans, as banks are likely to lend only to well-performing firms.
Muthurathnam also highlighted that the expected ban on garment imports from Bangladesh was not implemented. He summarized the industry's sentiment, saying, "The expectations of small and micro enterprises were high, but the announcements fell short."
KM Subramanian, President of the Tirupur Exporters Association, found some positive aspects in the budget. He welcomed the reduction in personal income tax as a favorable element for small business enterprises. However, he expressed disappointment over the export credit subsidy, which was announced at 3% instead of the expected 5%.
Subramanian praised the announcement of a Rs 5000 incentive for new employees as an excellent initiative. He also noted that the announcement regarding worker accommodation addresses a long-standing demand of the industry. "We are awaiting full details and expect immediate establishment of worker accommodations in Tirupur," he added.
The industry leaders' comments reflect a broader concern that while the budget has some beneficial elements, it may not adequately address the specific challenges faced by the textile sector in Tirupur, particularly for smaller players who form the backbone of the industry.
Muthurathnam, President of the Tirupur Exporters and Manufacturers Association, stated that while the budget is favorable for corporate companies, it lacks sufficient schemes for SMEs, which constitute 90% of the industry. "Our requirements have not been met," he said, pointing out the absence of plans to assist struggling companies in obtaining loans, as banks are likely to lend only to well-performing firms.
Muthurathnam also highlighted that the expected ban on garment imports from Bangladesh was not implemented. He summarized the industry's sentiment, saying, "The expectations of small and micro enterprises were high, but the announcements fell short."
KM Subramanian, President of the Tirupur Exporters Association, found some positive aspects in the budget. He welcomed the reduction in personal income tax as a favorable element for small business enterprises. However, he expressed disappointment over the export credit subsidy, which was announced at 3% instead of the expected 5%.
Subramanian praised the announcement of a Rs 5000 incentive for new employees as an excellent initiative. He also noted that the announcement regarding worker accommodation addresses a long-standing demand of the industry. "We are awaiting full details and expect immediate establishment of worker accommodations in Tirupur," he added.
The industry leaders' comments reflect a broader concern that while the budget has some beneficial elements, it may not adequately address the specific challenges faced by the textile sector in Tirupur, particularly for smaller players who form the backbone of the industry.