CMAI welcomed the Interim Budget presented by the Hon’ble Finance Minister Piyush Goyal. This Budget very well addresses the need of the people and the industry. Rahul Mehta, President, CMAI strongly believes that it is another Step towards fulfilling the PM’s Vision of New India.
Mehta further stated that the Budget proposes full Tax Rebate for individuals with annual income up to Rs. 5 lakhs. As a result, people with gross income up to Rs. 6.50 lakh may not be required to pay any income tax provided they make required investments. This will provide immense relief to an estimated three crore middle-class taxpayers. This move will increase the disposable income of the common man, and hence will boost the demand for all consumer products, including apparel.
Further, the income support of Rs. 6,000 to small and marginal farmers will increase the consumption in the rural areas, creating additional domestic demand in the tier 2&3 cities and semi-urban areas. Mehta further stated that the Budget also proposes that the businesses with less than Rs. 5 cr annual turnover, comprising over 90 per cent of GST Payers, will be allowed to file Quarterly Returns. This will help in improving the ease of doing business and reduce the documentation burden. Further, a 2 per cent interest subvention on loan of Rs. 1 cr for registered MSME Units has been proposed. Such a decision will largely benefit the textile and apparel industry, which is largely comprised of MSME Units.
The Hon’ble Finance Minister Piyush Goyal mentioned in his speech that India is poised to become a Rs. 5 tn economy in the next five years. We strongly believe that such favourable policy measures will help achieve the set target.