Budget 2022: What’s in it for Textiles Sector?
The exemptions to incentivize exports in handicrafts, textiles, and leather garments, as announced in Budget 2022, will enhance global competitiveness of textiles exports from India.
To incentivise exports, exemptions will be provided on items such as embellishment, trimming, fasteners, buttons, zipper, lining material, specified leather, furniture fittings and packaging boxes that may be needed by bonafide exporters of handicrafts, textiles and leather garments, leather footwear and other goods.
Result in more employment opportunities and increased economic activity, several duty exemptions have been granted to capital goods for various sector including Textiles. More than 350 custom exemption entries are proposed to be gradually phased out. These include exemption on certain fabrics for which sufficient domestic capacity exists. Further, as a simplification measure, several concessional rates are being incorporated in the Customs Tariff Schedule itself instead of prescribing them through various notifications.
The exemptions granted will boost Capital goods production in the country and further lead to employment generation boosting the growth of the domestic sector. This comprehensive review will simplify the Customs rate and tariff structure for the textiles sector.