The Indian textile sector has a long list of expectations for the next Union Budget 2023-24, which will be announced by Finance Minister Nirmala Sitharaman on February 1. Various industry organisations have already given suggestions and recommendations to the minister, who will debate them further during Pre-Budget meetings.
In recent years, India’s economic development has been volatile. While the first half of the year was promised almost double-digit growth, the global economic slump had an impact on the Indian economy in the second semester. These were some of the Indian company’s primary requests before the Narendra Modi government’s final full Budget before the 2024 elections.
For a long time, there has been an alarming increase in smuggled and counterfeit items, notably in everyday-use wearables and products offered. Such unlawful items are widely available across the country, even in rural marketplaces, and account for around 25-30 per cent of the entire market.
The current scenario of the retail industry
The Federation of Retailers Association of India has written to the Finance Minister, pleading with him to defend the interests of its 80 lakh members. These shopkeepers make a living by selling necessities such as biscuits, soft drinks, mineral water, confectioneries, cigarettes, and so on. It stated that pre-lockdown profits for tiny merchants were between Rs 6,000 and Rs 12,000 per month, while earnings for somewhat larger businesses or medium retailers ranged between Rs 400 and Rs 500 per day. Micro sellers might make as low as Rs 200 per day. Companies across the board anticipated that the government would find methods to court the people, particularly in rural India, and reinforce its position as the world’s fastest-growing economy.
The government’s primary goal remains to guarantee sustained economic development through different budgetary measures. The government must implement policies that would enhance consumption in the country and, as a result, assist businesses expand.
One such retail menswear clothing brand – Powerlook’s co-Founder, Amar Pawar says, “We also anticipate some easing in the tax structure. Local taxes, which range between 4% and 6% depending on location, are a barrier to textile sellers in determining the best cost of clothes. To stay competitive in the global market, the sector should be paid for these unjustified and overburdening expenditures.”
The ‘Custom Duty’ on textiles, machines, accessories, and fabrics should be eliminated, allowing for free import at zero rates.
The removal of ‘Service Tax’ from real estate would allow businesses to extend their operations freely, reaching out to their target audience with minimal trouble.
Special incentives are being offered to clothing makers and retailers through banks in order for them to strengthen their operating facilities and fulfil the ever-increasing needs of progressive clients.
The government should take initiatives to ensure the growth and sustainability of discretionary income.