Budget 2020: Concerns Remain Unattended; Nothing much for apparels and textile industry

Mumbai: The textile industry which is reeling under a crisis from last few years was expecting major announcements especially with regards to the Goods and Services Tax (GST) from the government. However, the industry felt let down, when finance minister Nirmala Sitharaman made no 'special' announcements for the textile industry which contributes to over 13 per cent of the industrial output and over 2 per cent to the GDP of India.

While presenting the union budget for 2020-2021, the FM proposed National Technical Textile Mission (NTTM) with an outlay of Rs. 1,480 crore over four years to cut down imports. However, the industry claims that the government has done little for them.

Speaking to the Free Press Journal, Rakesh Gokani from Mumbai's popular Mangaldas Market, said the industry has been reeling under a crisis from last 60 years, however, it is going through its worst phase from last four years.

“Ever since the government introduced GST, our business went down and has not yet revived properly. We were expecting that it would make some announcement and reduce the GST, however, nothing of this sort was announced,” Gokani said.

According to Gokani, the GST has made an adverse impact on the overall turnout of the business. “I should be earning a minimum of Rs. three lakh a month but just because of this GST I am earning only one lakh every month,” Gokani said.

“We have been demanding the government not to lower the credit period. We want this credit period to be of a minimum of three years but the government made it to one year, which is again having an impact on our business,” Gokani added.

Similarly, the textile industry was expecting a reduction of taxes on imports and also relaxations pertaining to electricity bills. “Last year there were reductions in the import of wool but this year nothing has been announced. We were expecting the government would reduce the charges on electricity consumption by textile factories but our demands have fallen on deaf ears,” said Sagar Jain, a textile shop owner.

(To download our E-paper please click here. The publishers permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Free Press Journal

www.freepressjournal.in