Interviews
The Budget is growth-oriented, TEXPROCIL
17 Mar '12
2 min read
The Union Budget for 2012-13 has increased the Excise duty on Cotton textiles from 4% to 6%. The Service Tax rate has also been increased from 10% to 12%. The Budget has exempted automatic shuttleless loom from basic customs duty of 5% and has allocated an amount of Rs. 2914 crores under the TUF scheme.
“The Budget is pragmatic, growth-oriented and in the right direction'', said shri Amit Ruparelia, Chairman, The Cotton Textiles Export Promotion Council (TEXPROCIL).
“The exemption of customs duty on automatic shuttleless looms will certainly give a boost to the modernization efforts of the textile industry in the weaving sector and will help India emerge as a vibrant hub for fabric production in South Asia”, according to the Chairman, TEXPROCIL.
The setting up of a powerloom mega cluster in Ichalkaranji and two more handloom clusters in Andhra Pradesh and Jharkhand each and the announcement of Rs.500 crore pilot project for the promotion and application of Geo textiles in the North Eastern region are all positive steps according to the Chairman, TEXPROCIL.
However, the increase in the Excise duty & Service Tax rate will increase cost for the exporters, pointed out Shri Ruparelia. He urged the Government to suitably increase the Duty Drawback rates to reflect the higher incidence of excise duty and Service tax so that exports of textiles remain competitive.
Since its inception in 1954 as an autonomous, non-profit export promotion body, TEXPROCIL has become the international face of Indian Cotton Textiles successfully facilitating exports. For the foreign buyer, it has opened the entire range of Indian cotton yarns, fabrics and made-ups and has become the one-stop source for it. While for the discerning Indian seller it has brought within reach the opportunities afforded by the global market.
“The Budget is pragmatic, growth-oriented and in the right direction'', said shri Amit Ruparelia, Chairman, The Cotton Textiles Export Promotion Council (TEXPROCIL).
“The exemption of customs duty on automatic shuttleless looms will certainly give a boost to the modernization efforts of the textile industry in the weaving sector and will help India emerge as a vibrant hub for fabric production in South Asia”, according to the Chairman, TEXPROCIL.
The setting up of a powerloom mega cluster in Ichalkaranji and two more handloom clusters in Andhra Pradesh and Jharkhand each and the announcement of Rs.500 crore pilot project for the promotion and application of Geo textiles in the North Eastern region are all positive steps according to the Chairman, TEXPROCIL.
However, the increase in the Excise duty & Service Tax rate will increase cost for the exporters, pointed out Shri Ruparelia. He urged the Government to suitably increase the Duty Drawback rates to reflect the higher incidence of excise duty and Service tax so that exports of textiles remain competitive.
Since its inception in 1954 as an autonomous, non-profit export promotion body, TEXPROCIL has become the international face of Indian Cotton Textiles successfully facilitating exports. For the foreign buyer, it has opened the entire range of Indian cotton yarns, fabrics and made-ups and has become the one-stop source for it. While for the discerning Indian seller it has brought within reach the opportunities afforded by the global market.
The Cotton Textiles Export Promotion Council (TEXPROCIL)
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