The textile industry of Tamil Nadu has sought export incentives and additional credit support in the budget for 2023-24 of the Union government to be presented in Parliament on February 1.The Tiruppur textile industry which is the pioneer for exporting of textiles from Tamil Nadu and for that matter from South India has sought for credit support to the micro, medium and small scale units (MSME). The industry has sought credit support under the Emergency Credit Line Guarantee Scheme (ECLGS).
The exporters said that the economic slowdown and the uncertainty in the European market following the Ukraine war have led to a predicament for the industry which has been controlling the European market in the knitwear section. K.M. Subramanian, President of Tiruppur Exporter's Association (TEA) in a statement said, "A 5 per cent interest subsidy on export credit is required for MSME and non-MSME manufacturers. It is to be noted that the buyers are delaying payment globally citing several issues. "The Textile exporters also said that Summer Good orders, a major order from European countries have fallen drastically for Tiruppur textile industry. Exporters and knitting company owners said that there is a decline of 30-40 per cent of the orders from the European market itself and this has affected the survival of the industry. On February 1, Finance Minister Nirmala Sitharaman will deliver the Budget Speech and the Budget 2023. Beginning on January 31, Parliament will hold its budget session.