Chairman of the Confederation of Indian Textile Industry (CITI), Rakesh Mehra, congratulated Finance Minister Nirmala Sitharaman on presenting her 7th budget, hailing it as forward-thinking for the Indian economy. He highlighted the need for bold measures in the stagnant textile and apparel industry to boost capacity, modernize, and enhance cost competitiveness.

Mehra emphasized the importance of MSMEs, which constitute 80 per cent of the textile industry, and praised the announced credit assurance schemes for aiding MSME growth and innovation. He lauded the recognition of e-commerce as a growth engine and the establishment of e-commerce hubs, industrial parks, and support for working women's hostels.

The budget’s focus on skilling, the Employment Linked Incentive scheme, and eased FDI norms were noted as positive steps for new investments. Financial support for clean energy transition and energy audits demonstrated the government's commitment to sustainability. Mehra also appreciated income tax relaxations, expecting an increase in consumer purchasing power to boost domestic textile demand.

However, Mehra pointed out the industry's struggles with raw material availability at competitive prices and the lack of investment incentives following the TUFS scheme's expiration in March 2022. He noted the need for capital subsidy schemes to ensure large-scale investments, as the current PLI scheme falls short. Mehra called for bolder steps to revive this employment-generating sector for a 'Viksit Bharat'.