Drafted by the Union Textile Ministry, the new Technology Upgradation Fund Scheme, will incentivize textile machinery manufacturers also, says Upendra Prasad Singh, Textile Secretary. The scheme will replace the existing Amended Technology Upgradation Fund Scheme (ATUFS). The new scheme will include the spinning sector and the machinery manufacturers. It will be approved by March this year with fresh allocation of funds, adds Singh.

The textile industry will also be allotted additional Rs 11,000 crore benefits through the Rebate of State and Central Taxes and Levies Scheme and Remission of Duties and Taxes on Exported Products scheme. It will also approve the Silk Samagra II scheme for the integrated development of the silk sector with substantial budget allocation or Rs 875 crore for next fiscal. The Production Linked Incentive Scheme is also likely to see more investments as the government has extended concessional tax of 15 per cent for new manufacturing units that start production before the end of March 2024.

In 2021-22, textile and clothing exports are likely to cross $40 billion as against the target of $44 billion, says Singh. Apparel exports are also expected to increase during the year, he adds.