New Delhi, Feb 2 (KNN) Welcoming the Union Budget 2021-22, Apparel Export Promotion Council (AEPC) Chairman Dr A Sakthivel has said that the Budget takes care of all the sectors and will ensure robust economic recovery going forward.

“I sincerely thank the Finance Minister for taking care of all the sectors including the apparel sector. This is one of the finest budgets considering the current situation due to the coronavirus pandemic. All key sectors like health, agriculture, infrastructure, finance and skilling have been covered well. It will improve the economy,” Dr Sakthivel said.

The Chairman particularly thanked the government for the Budget decisions that will promote production and export of manmade fibre (MMF) based garments.

“Our main request was related to MMF garments and that has been considered by the government. The Rs 10,683 crore Production Linked Incentive (PLI) scheme for MMF garments and technical textiles, along with new Mega Investment Textile Parks scheme for setting up seven textile parks in India over three years will bring in huge investment in the MMF sector,” Dr Sakthivel said.

The Chairman thanked the Ministry of Textiles for the encouragement given to the MMF garments. “The mega textile parks with plug-and-play facilities by the government will create global export champions. These will help in creating world class infrastructure in the textile sector, bring in investment, increase exports and provide employment.”

He said that the focus on infrastructure highways, railways and ports is a welcome decision as it will go a long way in improving the logistics and reduce the cost of doing business. Further, the rationalization of GST and customs will also help in easy access to raw materials and export of value added products.

“The reduction in custom duty on nylon will further promote the MMF garments,” said the Chairman, adding that the doubling of budget provision to Micro, Small and Medium Enterprises (MSME) sector with the allocation of Rs 15,700 crore in the coming fiscal will strengthen the sector crucial for employment, manufacturing and exports.

Dr Sakthivel also lauded the announcements related to the shipping sector wherein an allocation of Rs 1,624 crore has been made. A scheme to promote flagging of merchant ships in India will be launched by providing subsidy support to Indian shipping companies in global tenders floated by Ministries and CPSEs. “This will help in reducing our shipping costs,” he said.

The Chairman also welcomed the government’s decision to increase the capital expenditure to Rs 5.54 lakh crore in FY '22 from revised estimate of Rs 4.39 lakh crore in FY’21 saying it will prop up the economy by improving aggregate demand.