Rahul Mehta, Chief Mentor, Clothing Manufacturers Association of India (CMAI) said “This budget is extremely pragmatic and innovative in some of the bold decisions and directions it has taken to encourage employment directly. The steps include an internship scheme, the decision to reimburse one month’s wages for new employees, and subsidies for employees earning over a lakh of rupees. These are excellent steps being taken. However, there are many open-ended areas at this point, and we await the details before making specific suggestions. Nonetheless, this is a visionary, pragmatic, and very innovative budget that the Finance Minister has presented. Whilst most of these measures are for all industries, they will likely benefit the textile and apparel industry equally, if not more, since it is more labour-oriented. Therefore, we are confident it will benefit the apparel industry.
Furthermore, additional measures announced to support bank credits to MSME’s and easing of foreign investment will also benefit textile and apparel industry. The import relaxation in some of the important raw materials, trims and accessories required for garment manufactures will also help the garment manufacturers to be more competitive, especially in the Export markets.
Kumar Rajagopalan, CEO, Retailers Association of India (RAI) said The government has tried to strike a balance between populist and policy measures. RAI appreciates the government’s focus on empowering the middle class and rural population. Initiatives such as monetary support for farmers, higher exemption limits in personal income tax, and increased standard deductions will provide higher disposable income, leading to increased spending. We believe this will stimulate consumption growth, thereby boosting the overall economy. The reduction of duty on gold, precious metals, and mobile phones will also provide a significant boost to these sectors, particularly during the festive season.
The government’s commitment to skilling and employment support, including initiatives for youth employment and skilling programs, is another commendable aspect of the budget, ensuring a future-ready workforce in the retail sector.
The budget’s emphasis on MSMEs and startups, including enabling more lending and abolishing angel tax, is a positive step towards realizing their potential. Tax simplification and compliance, which are crucial needs of the hour, have also been addressed. Additionally, the Employment Linked Incentive, offering reimbursement to employers up to ₹3,000 per month for two years towards their EPFO contribution for each additional employee, is a welcome move.
The establishment of working women’s hostels and creches in collaboration with the industry is an essential measure for supporting women working in the retail sector. The focus on developing infrastructure for shopping in urban development is a significant step forward.
