The government's decision to increase allocation for the Remission od State Levies (ROSL) is set to boost textile sector, experts said.
The Union Finance Minister Piyush Goyal in the interim Budget 2019 announced an increase in the ROSL scheme from Rs 2,164 crore to Rs 3,664 crore for 2018-19. The Budget has also allocated Rs 1,000 crore for this scheme for the fiscal year 2019-20.
“The increase in the budget allocation for the ROSL scheme is a step in the right direction. We urge the government to include cotton yarn and fabrics also under the ROSL scheme," said K V Srinivasan, Chairman, The Cotton Textiles Export Promotion Council (Texprocil) .
Apart from the ROSL benefit, the textile and apparel industry is also set to gain from an overall farmer- and consumer-centric budget.
Increase in personal income rax and rebate limit would certainly raise disposable income of the middle class people of which a portion would come to textile and apparel sector. Consumption and consumer spend of middle class and rural India is expected to go up thanks to the Budget proposals and hence benefit the Apparel and Textile Industry," said Rahul Mehta, President, Clothing Manufacturers Association of India (CMAI).
Confederation of Indian Textile Industry (CITI) chairman Sanjay Jain said, "The Budget will increase purchasing power of the middle class, farmers and lower tiers of society and will drive textile and clothing consumption in a big way. The Budget also helps MSME in textile sector in a big way."