Rajeev Gupta, CEO of RSWM Limited, has shared critical expectations for the textile and manufacturing sector in anticipation of the upcoming Union Budget. His recommendations focus on addressing industry challenges and enhancing global competitiveness.

One major issue Gupta highlights is the high cost of raw materials in India, driven by Quality Control Orders (QCOs) on man-made fibres (MMF) and yarn. These non-tariff barriers limit the availability of specialized yarns and fibres, leading to inflated local prices. Gupta urges the government to liberalize import policies, reduce or eliminate customs duties on MMF fibres and essential chemicals, and promote a competitive market for raw materials.

He also points out the need to extend the Production-Linked Incentive (PLI) scheme beyond synthetic fibres to cover the entire textile industry, encouraging broader investments. Additionally, Gupta advocates for the reinstatement of the Technology Upgradation Fund Scheme, which previously supported machinery upgrades with subsidies.

For cotton farmers, Gupta suggests replacing the Minimum Support Price (MSP) procurement scheme with a Direct Benefit Transfer (DBT) program, allowing farmers quicker access to liquidity. He also recommends creating a Cotton Price Stabilisation Fund to manage price volatility and extending the credit limit period for cotton procurement from three months to eight. An interest subvention scheme could further stabilize prices.

Finally, Gupta calls for the deferment of Section 43B(h) of the IT Act, 1961. The new provision mandates taxation on unpaid dues to MSMEs within 45 days, disrupting the industry’s production planning due to longer credit cycles. He suggests a phased reintroduction to give the sector time to adjust.

RSWM Limited, the flagship company of LNJ Bhilwara Group, is one of the leading manufacturers and exporters of synthetic, cotton and blended spun yarns in India. Under the leadership of Mr. Riju Jhunjhunwala, Chairman and Managing Director of RSWM Ltd, the textile company exports a wide range of fabric and yarns to over 70 countries across the globe.