The Union Budget 2024 introduces measures to boost job creation in labor-intensive sectors like textiles and apparel, with focus on women's participation and SME exports.
Coimbatore: The Union Budget 2024 has brought a ray of hope for the textile industry, with its emphasis on job creation and support for labor-intensive sectors. Prabhu Dhamodharan, Convenor of the Indian Texpreneurs Federation (ITF), highlighted the positive implications of the budget for the textile and apparel industry.
The newly introduced ELI (Employment Linked Incentive) scheme is expected to significantly benefit industries like textiles and apparel, underscoring the government's focus on job creation. This initiative is likely to stimulate growth and employment opportunities in the sector.
In a move to promote workforce stability, the budget proposes to increase women's participation in the workforce. The government plans to set up women's hostels in collaboration with industry, which is expected to create a more conducive environment for women workers and enhance their job prospects.
The budget also addresses the need for improved infrastructure and export competitiveness. The announcement of investment-ready plug and play industrial parks near 100 cities is expected to boost industry competitiveness. Additionally, the establishment of e-commerce export hubs will provide a significant advantage to Small and Medium Enterprises (SMEs) in expanding their export capabilities.
For the Micro, Small, and Medium Enterprises (MSME) sector, which forms the backbone of the textile industry, the budget brings good news in the form of a credit guarantee scheme. This, coupled with improved credit assessment practices by Public Sector Banks (PSBs), is expected to help the sector leverage the China Plus One strategy effectively.
Dhamodharan expressed optimism about these measures, stating that they would collectively contribute to the growth and competitiveness of the textile industry. The focus on job creation, women's participation, and support for MSMEs aligns well with the industry's needs and the broader economic goals of the country.