A Sakthivel, Chairman, AEPC opines the Union Budget for 2021-22 will ensure robust economic recovery going forward. He believes the Budget will promote production and export of MMF based garments. The Rs 10,683 crore production linked incentive scheme for MMF garments and technical textiles, along with new Mega Investment Textile Parks scheme for setting up seven textile parks in India over three years will bring in huge investment in the MMF sector, he added.

Sakthivel further said, the mega textile parks with plug-and-play facilities by the government will create world class infrastructure in the textile sector, bring in investment, increase exports and provide employment. The reduction in custom duty on nylon will further promote the MMF garments while the doubling of budget provision to micro, small and medium enterprises (MSME) sector with the allocation of Rs 15,700 crore in the coming fiscal will strengthen the sector crucial for employment, manufacturing and exports.

Sakthivel also lauded the announcements related to the shipping sector wherein an allocation of Rs 1,624 crore has been made. He said the scheme to promote flagging of merchant ships in India will help in reducing our shipping costs,” he said. He welcomed the government’s decision to increase the capital expenditure to Rs 5.54 lakh crore in FY’22 from revised estimate of Rs 4.39 lakh crore in FY’21, saying it will prop up the economy by improving aggregate demand.