Home / Knowledge / News / Textiles / 'Budget 2016-17 has little for textile & apparel'
'Budget 2016-17 has little for textile & apparel'
02
Mar '16
The Union Budget 2016-17 is good from an infrastructure, agriculture and rural development point of view, but it holds very little for the textile and apparel sector, according to industry experts.

“The 2016-17 Budget has been a pro-agriculture, pro-rural and pro-infrastructure Budget. Increased allocations in these sectors will definitely help strengthen the overall economy and enable long-term growth,” Tilokchand Kothari, MD of Visagar Polytex, said. “But the government has failed to look favourably into the textile sector in the current Budget.”

There was no mention of the various subsidies which could have boosted the growth of the industry. Emphasis on sector-specific skill development and opening of training centres is appreciated. But government needs to add training for imparting skills which will result in large-scale employment, he adds.

The Budget does not cater to apparel retailers, according to Arun Ganapathy, CFO of Spykar Lifestyle. Excise duty on branded readymade garments has been imposed under two options – 2 per cent tax without Input Tax Credit and 12.5 per cent with Input Tax Credit. This excise duty was withdrawn in Finance Bill, 2013, he informs.

The tariff value has also been changed from 30 per cent of MRP to 60 per cent of MRP.  This will be an additional cost on the apparel players, he says.

“As we are in the discretionary spend sector, no increase in personal income tax slabs or any major tax benefit for the common man is negative for us, as his net cash flow has not improved,” Ganapathy added.

The increase of service tax this year from 14.50 per cent to 15 per cent will have an adverse effect on the business economics, Harkirat Singh, MD of Woodland Shoes, said.

“The Budget is not too positive for the manufacturing and corporate sector,” he concluded. (MCJ)

Fibre2Fashion News Desk – India


Must ReadView All

Courtesy: Fancycrave.com from Pexels

Apparel/Garments | On 22nd Jun 2018

EU's retaliatory duty on US apparel takes effect

As part of the three-pronged response outlined by the European...

India to be largest cotton producer in 2018-19: USDA

Textiles | On 22nd Jun 2018

India to be largest cotton producer in 2018-19: USDA

For the fourth consecutive season, India is expected to be the...

Organic Basics gets Polygiene help for advanced underwear

Apparel/Garments | On 22nd Jun 2018

Organic Basics gets Polygiene help for advanced underwear

Danish firm Organic Basics is working with Swedish company Polygiene, ...

Interviews View All

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Kamal Kulshreshth

Colorjet is among the fastest-growing wide format digital inkjet print...

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search