Budget 2024: Textile sector welcomes MSME loan guarantee relief

COIMBATORE: The Union Budget has evoked mixed reaction among industrial bodies in Coimbatore on Tuesday.

The Kovai Power Driven Pumps and Spares Manufacturers Association (KOPMA) expressed disappointment over the lack of announcement on reducing GST for pumps used by farmers.

Meanwhile, the beleaguered textile sector welcomed the new loan appraisal model for MSMEs loan guarantee scheme up to Rs 100 crore. “Subsidy for the first four years through the Provident Fund to all newly employed workers and entrepreneurs will benefit 30 lakh youth. Also, developing 1,000 vocational training institutes, providing skill training to 20 lakh youth in five years, setting up of 12 industrial parks with plug and play facilities, reduction in duty on import of accessories required for manufacture of garments are some of the welcome features in the budget,” said KM Subramanian, president of Tiruppur Exporters Association. The CII, Coimbatore Zone, hailed the budget as a comprehensive and growth-oriented document. G Radhakrishnan, chairman, CII Coimbatore said, “The nil import duty on scrap ferrous and nickel will benefit Coimbatore’s foundry industry. Reduction in import duty on gold, silver and copper is expected to have a multiplier effect on the jewelry sector,” he said.

The SIMA has stated that announcements related to skilling, and MSMEs would benefit labour intensive textile industry.