Ludhiana, Jul 24 (IANS): India’s textile sector is poised for growth with a 28 per cent increase in the Budget allocated for the sector for 2024-25, said Northern India Textiles Mills Association (NITMA ) President Sanjay Garg on Wednesday.

This significant boost in funding is expected to drive innovation, enhance productivity, and create new opportunities for the textile industry in India. The increased investment underscores the government’s commitment to supporting the growth and development of the textile sector, which plays a crucial role in the country's economy, he said.

With this increased Budget allocation, the textile sector is well-positioned to capitalise on emerging trends and capitalise on new opportunities in the global market.

Garg emphasised that employment, skilling, and MSMEs are the key focus areas of the Union Budget. He highlighted the announcements made in these areas will greatly benefit the labour-intensive textile industry.

He commended the introduction of the Credit Guarantee Scheme for MSMEs, which includes provisions for term loans to purchase machinery and equipment without the need for collateral or third-party guarantee, with coverage up to Rs 100 crore, potentially even larger loan amounts.

The increase in the credit guarantee scheme limit is anticipated to stimulate investment in the textile sector. The Budget allocations for cotton procurement, the Amended Technology Upgradation Fund Scheme for the National Technical Textiles Mission, and enhanced funding for PM MITRA will also provide the necessary support to the textile sector, he added.