Among the investor friendly initiatives taken in the budget are abolishing the dividend distribution tax. This is likely to promote more FDI in the manmade fiber segment including processing textile machinery manufacturing in the country.
Another milestone of the budget is the National Technical Textiles Mission with a four-year implementation period from 2020-21 to 2023-24 at an estimated outlay of Rs 1480 crores. The technical textile segment is a sunrise sector in the entire textile industry in which nearly 90 per cent of the fibers used are manmade fibers. The National Technical Textiles Mission is expected to lift the Indian manmade fiber textile segment to a greater height and lead to a growth in per capita consumption of manmade fibers in India. At the same time this initiative is seen as helping generate more employment in the country. Similarly steps initiated toward boosting infrastructure are meant to address the existing infrastructural gap for export and structural issues in the country. The budget has also taken steps for encouraging Make in India initiatives by protecting domestic manufacturing units. Moreover digital refunds of state and central taxes to exporters will help the entire textile industry. The MSME turnover threshold for audit has been increased to Rs 5 crores from the existing Rs 1 crore.