Finance Minister Nirmala Sitharaman presented the Budget for 2021-22 on February 1. Here are the key announcements for the textile industry
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1. The levy of 10% import duty on cotton

The associations appealed to the Prime Minister to immediately withdraw the levy of 10% import duty on cotton and cotton waste to sustain the global competition, prevent job losses and fall in the exports and also curb cheaper imports of value-added products.

2. Mega textiles parks under MITRA

The textile ministry has proposed to develop seven Mega Integrated Textile Region and Apparel (MITRA) parks to double the industry size to $300 billion by 2025-26.

3. The Grand is Rs 3,614.64 crore

The grant to the textiles and clothing sector in Union Budget 2021-22 is Rs 3,614.64 crore, about 10% higher than the revised Budget amount of Rs 3,300 crore in 2020-21. 

4. Grant for infrastructure development and research & capacity building

The Budget also puts emphasis on infrastructure development and research & capacity building as the grant for these sectors has been increased by about 43.7% and 77.5%, respectively, compared to last year

5. Nylon chips and nylon fiber & yarn will be uniformly reduced to 5 percent

To bring the nylon chain on par with polyester and other man-made fibres, basic customs duty (BCD) rates on caprolactam, nylon chips and nylon fiber & yarn will be uniformly reduced to 5 percent

6. Customs duty on cotton

To benefit cotton and silk growers, Sitharaman also proposed to raise customs duty on cotton from nil to 10 percent and on raw silk and silk yarn from 10 percent to 15 percent.

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