The Union Budget 2020 may well prove to be a trigger for the textile industry to come out of its downturn phase
Finance Minister Nirmal Sitharaman presented the Union Budget 2020 on February 1, addressing several important issues related to the textile, apparel and fashion industry. Some of these include abolishing the Anti-Dumping Duty on PTA, setting up a National Technical Textiles Mission, review of these rules of origin in FTAs and schemes for remission of duties and taxes levied on export products (RODTEP).
Most importantly,the removal of Anti-Dumping Duty on PTA will be a potential game-changer. Elaborating about the proposed abolition of this duty on Purified Trephithalic Acid, FM Sitharaman said the Government has taken this move because PTA is a critical input for textile fibre and yarns. The easy availability of this product at competitive prices is desirable to unlock the immense potential in the textile sector, which is a significant employment generator.
The textile industry had for long been demanding abolition of the Anti-Dumping Duty levied on PTA, the basic raw material used for manufacturing polyester staple fibre and filaments, to remain globally competitive. The Ministry of Textiles envisages an increase in the size of the textile business size from the current level of around USD 169 Billion to USD 350 billion by 2025 and to USD 650 billion by 2030 in its draft textile policy. To achieve this ambitious target, this step may prove to be one in the right direction to make polyester fibre and filaments available at international prices as there is a limitation in increasing fibre base within the country.
Source:The Textile Magazine.
The Blogger will try to get information of all the fibers prices and allotment if made to mills and will come up with what is happening next.