The Clothing Manufacturers Association of India (CMAI) stated that the Budget 2019-20 announced by the Hon’ble Finance Minister, Nirmala Sitharaman is a mixed bag for the textile and apparel industry. Giving his reaction on the budget, Rahul Mehta, President, CMAI, stated that the extension of lower rate of 25 per cent corporate tax with an annual turnover up to Rs. 400 cr is a welcome step. Currently, this rate is only applicable to companies having annual turnover up to Rs. 250 cr. He added that infusion of Rs. 70,000 cr capital into public sector banks will ease the current credit squeeze. Also, Rs. 350 cr allocated for 2 per cent interest subvention for all GST-registered MSMEs on fresh or incremental loans will give a big thrust to MSMEs. Considering that over 80 per cent of the domestic apparel industry is in the MSME sector, all these measures could provide a boost to the sector.
