Major textile bodies in the region on Wednesday welcomed the Union Budget by terming it as one aiming at strong and stable economic growth.
President of Tirupur Exporters Association (TEA) K M Subramanian said the budget mentions the seven priorities “Saptarishi” that would trigger the economic growth. In a statement, he said the priority for infrastructure development would reduce logistics cost. He said he appreciates the focus given to green growth.
While welcoming the increased allocation of `900 crore for ATUF (amended technology upgradation fund) scheme for 2023-24 as against `600 crore last year, Subramanian said he was hopeful that the increased allocation would help to clear the ATUF pending claims.
However, there was no announcement on continuance of ATUF scheme in this budget and he was hopeful that government would announce it in the near future, he said.
The focus on enhancing the yield of extra-long staple (ELS) cotton would help increase the manufacturing of value-added garments and also to reduce import of ELS cotton.
He welcomed the extension of the credit guarantee scheme for MSMEs with an infusion of `9,000 crore, collateral for `2 lakh crore loans to MSMEs, effective from April 1, 2023.
In a statement, chairman of Southern India Mills Association Ravi Sam appreciated the thrust on inclusive growth and skill development that would help the labour- and capital- intensive textile industry. He thanked the government for considering the proposal submitted by SIMA and announcing a scheme for increasing the production of extra-long staple cotton.