With regard to some of the daring choices and approaches it has made to directly promote employment, this budget is incredibly imaginative and practical. The actions include the implementation of an internship programme, the choice to pay back one month’s salary to newly hired staff, and subsidies for workers making more than one lakh rupees. These are commendable actions being implemented. At this stage, there are a lot of undefined areas, therefore before providing any concrete recommendations, we need more information. Still, the finance minister has provided a very creative, original, and realistic budget. Although the majority of these solutions apply to all industries, given that the textile and garment business is more labor-oriented, they will probably help it just as much, if not more. We are therefore optimistic that it will help the clothing sector. The textile and garment industries will also profit from newly announced initiatives to encourage bank credits to MSME’s and ease international investment. The ability to import some essential raw materials, trimmings, and accessories will also help clothing makers become more competitive, particularly in export markets.
Budget Reaction from Kumar Rajagopalan, CEO, Retailers Association of India (RAI)
The administration has made an effort to combine policy initiatives with populist ideas. RAI values the government’s emphasis on uplifting rural and middle class citizens. Measures like enhanced standard deductions, higher personal income tax exemption limits, and financial assistance for farmers will raise disposable income and spur consumption. This will, in our opinion, encourage increase in consumption and strengthen the economy as a whole. These industries will benefit greatly from the lower taxes on gold, precious metals, and cell phones, especially during the holiday season.
Another admirable component of the budget is the government’s dedication to job support and skill development, which includes programs for youth employment and skill development. These efforts will guarantee a workforce prepared for the future in the retail industry.
Realizing the potential of MSMEs and startups is made possible by the budget’s emphasis on them, which includes measures like facilitating more loans and doing away with the angel tax. The pressing requirements of the hour, tax compliance and simplification, have also been addressed. Furthermore, it is a positive step that companies can receive reimbursement of up to ₹3,000 per month for two years toward their EPFO contribution for each additional employee under the Employment Linked Incentive.
One crucial step in assisting women employed in the retail sector is the creation of working women’s hostels and creches in partnership with the sector. The emphasis on creating shopping-related infrastructure in urban development is a big advancement.
