22nd January, 2021

Major Push Likely For Textile, Gems & Jewellery Sector In Budget 2018

The finance-ministry may dole out a special package to spur the textile and gems & jewellery sector in the upcoming Budget. As the sectors are hit badly by the GST, it seems that people in Gujarat have decided to vote in favour of the economic agenda of the Bharatiya Janata Party government.

A senior finance ministry official has said that besides the agriculture sector, the textiles and jewellery sectors will be prioritised as the employment generating sectors. The source added that there may be more freebies and subsidies in the coming Budget.

The BJP scored well in Surat, which is a diamond and textile market. The region was among the worst-hit after GST and demonetisation.

A decline of 10 per cent in the overall gems & jewellery exports was seen in the first six months of this financial year. The gems & jewellery exports amounted to approximately 2.89 lakh crore during 2016-17. The traders blamed demonetisation and GST for the decline.

It is assumed that since the industry has voted for the government, the Centre may adapt populist measures and announce some postive news for the sectors in the Union Budget 2018. Apparently, the Budget 2018 will be the full Budget by the current government.