Interviews
Union Budget forgets garment export sector, GEA
26 Mar '12
2 min read
While appreciating some progressive measures in the Union Budget, Mr. Rakesh Vaid, President of Garments Exporters Association (GEA) feels that the Budget proposals could have taken better care of the genuine needs and demands of the garment export sector.
He appreciated the provisions for support to the R&D activities and testing laboratories and exemption upto 150% for expenditure on skill development in manufacturing sector as also allocation of Rs.1,000 crore for National Skill Development Programme and improving infrastructure facilities like roads, ports and ICDs. However, but is disappointed for absence of any substantial help that the garment export industry badly needed.
Mr Rakesh Vaid pointed out that the Budget has not addressed the issues of competitiveness and specific concerns relating to high transaction cost, poor infrastructure, hardening of interest rate for export credit, realistic duty drawback rates, and labour reforms to reverse the recent downturn in garment exports.
The Budget has also made no reference to extend the Technology Up-gradation Funds Scheme to encourage investment in the textile industry, said, Mr Rakesh Vaid. The Budget has not extended the interest rate subvention earlier provided to exporters on bank credit.
Mr Rakesh Vaid has requested the Government to enhance the rate of service tax refund from 0.15 per cent to 1.5 per cent in view of 2 per cent increase in service tax rate from 10 to 12 per cent and the actual incidence of service tax on exports which is much higher than being refunded by the Government.
He appreciated the provisions for support to the R&D activities and testing laboratories and exemption upto 150% for expenditure on skill development in manufacturing sector as also allocation of Rs.1,000 crore for National Skill Development Programme and improving infrastructure facilities like roads, ports and ICDs. However, but is disappointed for absence of any substantial help that the garment export industry badly needed.
Mr Rakesh Vaid pointed out that the Budget has not addressed the issues of competitiveness and specific concerns relating to high transaction cost, poor infrastructure, hardening of interest rate for export credit, realistic duty drawback rates, and labour reforms to reverse the recent downturn in garment exports.
The Budget has also made no reference to extend the Technology Up-gradation Funds Scheme to encourage investment in the textile industry, said, Mr Rakesh Vaid. The Budget has not extended the interest rate subvention earlier provided to exporters on bank credit.
Mr Rakesh Vaid has requested the Government to enhance the rate of service tax refund from 0.15 per cent to 1.5 per cent in view of 2 per cent increase in service tax rate from 10 to 12 per cent and the actual incidence of service tax on exports which is much higher than being refunded by the Government.
Garment Exporters Association
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