Budget 2021 : Textile Sector – UPSC GS3

Provisions in Budget 2021:
  • 7 Mega Investment Textile Parks would be set up over the next three years with plug and play facilities.
  • To rationalise duties on raw material inputs for man-made textiles, the Budget proposed to bring nylon chain on a par with polyester and other man-made fibres by reducing the basic customs duty on caprolactam, nylon chips, nylon fibre and yarn to 5%.
  • The Amended Technology Upgradation Fund Scheme, handloom development and textile infrastructure have received higher allocations.
  • Significance:
    • The proposed Textile Parks would enable the Indian textile industry to become globally competitive.
    • The increased allocation to schemes such as the Production Linked Incentive Scheme would provide an impetus to the textile sector in India.
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