The textile and diamond industry in Surat and the Southern Gujarat Chamber of Commerce and Industry on Sunday welcomed the Union Budget presented by Union Finance Minister Niramala Sitharaman in Parliament, with the SGCCI calling it a “development-oriented budget” based on the “Sabka Saath Sabka Vikas” concept.
The industry leaders welcomed the decision to allow diamond and jewellery industries working in Special Economic Zones (SEZs) to sell certain goods in the domestic market at concessional duty rates — earlier all the goods from such units had to be exported. They also welcomed the announcement of creating a Self Reliant India fund for assistance to micro-enterprises. The industry leaders also hailed the special packages and schemes for sectors ranging from semiconductors, textiles and MSMEs.
SGCCI president Nikhil Madrasi said that most of its demands, including a special scheme to set up a Centre of Excellence for the textile sector, were met in the Budget.
“Our demands also include a cluster-wise upgradation fund, which was also announced in the budget,” Madrasi added. “A transaction settlement programme has been announced to provide liquidity support to small businesses. A ‘Self-India Fund’ will be created, which will provide direct assistance to micro enterprises, a credit guarantee support mechanism will be set up and the GEM portal (government e-commerce marketplace) will be linked to the trade,” he said. Federation of Gujarat Weavers Association president Ashok Jirawala welcomed the mega textile park and national fibre scheme announced in the Budget for the textile industry.
“A special scheme was announced for textile growth in rural areas, where women will get benefits. Our demand for setting up a textile university through the SGCCI has also been approved, as the Finance Minister announced the establishment of a textile university in industrial areas where research and development can be conducted. Youths who graduate from such a university will get jobs,” Jirawala explained.
“The CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) scheme facilitates collateral-free loans up to Rs 10 crore for small entrepreneurs, traders and startups. This has been our demand for many years. The announcement will increase the economic development of Surat at a double speed,” he added.
Welcoming the budget, SGCCI former president Vijay Mewawala said the announcement of the faceless mechanism in the customs clearance process under the customs warehousing framework will increase transparency and reduce time and cost. “Apart from this, the reduction of TCS (Tax Collected at Source) rate applicable for foreign travel will benefit the travel service sector,” he said.
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SGCCI honorary secretary Bijal Jariwala said the abolition of import duty on specific raw materials for the exporting textile and leather products will give a boost to the industry. “The period for completing the export obligation has also been increased,” he said.
“Artisans will get encouragement and support through the National Handloom Policy, in which technical assistance will be provided to them. In addition, under Mahatma Gandhi Gram Swaraj, encouragement has been given for the production, training and marketing of Khadi and handicrafts. One District One Product will be given a boost. An initiative has been taken to equip India in the field of technology through the India Semiconductor Mission (ISM 2.0),” Jariwala said.
Surat textile businessman Ashish Gujarati said the National Fibre Mission, announced in the budget, will help increase the domestic production of specialty yarn and fibre. “The Common Facility Centre and Innovation Centre, announced in the budget, to modernise the traditional textile clusters in Surat, Bhiwandi, Tirupur, Ichalkaranji, will be a big boost to the clusters,” he added.
Diamond & Jewellery
The diamond, gems and jewellery industry players welcomed the announcement to remove Rs 10 lakh cap in international e-commerce.
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In addition, units located in SEZs (Special Economic Zone) have been allowed to sell certain goods in the domestic tariff area. Surat has two SEZ’s—Surat Special Economic Zone (SuRSEZ) (Diamonds, Gems and Jewellery) and Surat Apparel SEZ (for textile and chemicals).
Gems and Jewellery Export Promotion Council (GJEPC) termed the Budget “growth-focused and addressing key bottlenecks, giving fresh momentum to India’s gems and jewellery sector. It improves liquidity, supports manufacturing and strengthens exports across the value chain, it said.
Several recommendations of the GJEPC have been reflected in the budget. Faster, trust-based customs processes with digital appraisals and simplified clearances will reduce delays and costs and accelerate business; while allowing limited SEZ sales to the Domestic Tariff Area at concessional duty will help factories use idle capacity, maintain cash flow and protect jobs, it said.
GJEPC chairman Kirti Bhansali said the removal of the Rs. 10 lakh cap on courier exports is a big boost for e-commerce, enabling MSMEs, artisans and small jewellery brands to reach global buyers directly.
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“With MSMEs forming over 80 per cent of our industry, measures such as the Rs 10,000 crore SME Growth Fund, Rs 2,000 crore support for micro units and Rs 7,00,000 crore liquidity through TReDS, revamped NBFCs will ease credit and drive expansion,” Bhansali added. Gujarat region GJEPC chairman Jayanti Savaliya said, “Extending the duty deferment period for Authorised Economic Operators (AEOs) from 15 to 30 days and offering similar benefits to eligible manufacturers will improve cash flow and reduce compliance burden, helping exporters move goods quicker and operate with greater ease.”
Indian Diamond Institute, Surat, chairman Dinesh Navadiya said the budget announcement of setting up a new National Institute of Design will strengthen the design talent and innovation in the country.
“This means better product development, contemporary styling and stronger branding, helping Indian manufacturers move up the value chain and compete more effectively in global markets. Overall, this Budget will move India closer to our goal of scaling exports to $100 billion by 2047,” Navadiya said.
Indian Bullion and Jewellers Association state president Nainesh Pachhigar also welcomed the Budget.
