Industry experts want Union Budget 2020-21 to be a dream budget that gives a boost to employment generation and revives consumer demand. In fact, demand revival is key to jobs growth and beat the current economic slowdown. Union finance minister Nirmala Sitharaman is scheduled to present the budget for the upcoming financial year in Parliament on February 1.”Textiles industry is one of the largest employment generators after agriculture sector in India. We expect the forthcoming budget to extend PF & ESI support for benefit of all workers under the aegis of MGNREGA. Doing so will benefit large number of workers who come under the scope of MGNREGA,” says Kunj Behari Agarwala, MD, Rupa And Company Limited.“Textile exporters need to be incentivised to make it competitive vis-à-vis exporters from Vietnam and Bangladesh, as labour costs are comparatively cheaper in these countries. The government may execute this by allowing textile manufacturers duty-free access to key markets,” feels Shubhasis Sur, AGM–Sales & Marketing, Kusters Calico Machinery Pvt Ltd.While the textile sector does play a major role, the growth of retail sector is also of utmost concern. Sharing her views, Samiksha Bajaj, Co-founder, Samshék said, “Boost in the retail sector growth is certainly expected in the coming budget along with innovation and sustainability being the focus. Setting up innovative research centres to promote technology in fashion and garment industry is another aspect for the upcoming budget 20-21.”The finance minister can make changes in income tax slabs to revive consumer demand. “The first and foremost expectation of consumers is reduction in personal income tax rates through concessions in tax slabs. Such a move will help in boosting the sentiment of consumers. Given the subdued demand for consumer goods, reduction in personal income tax rates will lead to spurring the growth in the industry,” adds Sur.Removal of Reverse Charge Mechanism, reduction of power cost, implementation of trade pacts and export benefits in garments vertical, and reduction in import duty are other things the budget should address, according to Sur.
Fibre2Fashion News Desk (WE-DD)