Home / Knowledge / News / Textiles / CITI places pre-budget memorandum before Finance Ministry
CITI places pre-budget memorandum before Finance Ministry
Jan '13
As you are aware, Confederation of Indian Textile Industry is the apex industry chamber of the textiles and clothing industry. We need not elaborate the importance of textiles sector for our economy, since you are fully aware of its contribution to industrial production, employment and exports.

After detailed discussions and consultations within the industry on the fiscal issues that need to be addressed by the ensuing Central Budget, we have formulated the following recommendations for your kind consideration:


The optional duty regime for textile products may be continued. The current stipulation of duty payment with the facility of cenvat credit or duty exemption without cenvat credit has been working well and has led to growth both in investments and production.

The duty on manmade fibers and their raw materials may be reduced to 8 percent from the current 12 percent. Both the industry and government have recognized the need for a fiber neutral excise regime for the textiles industry, in order to realize the immense potential for growth that exists in our manmade fiber based products and also to remedy the mismatch between the fiber consumption patterns in India and our major importing countries.

A reduction in the excise duty rate for manmade fibers will help in achieving this objective at least partly, since natural fibers are not subject to excise duty. And this may not lead to revenue loss, since demand and therefore production will increase, leading to increased revenue.

With cost of production going up in China, the manmade fiber based textiles industry of India has an opportunity opening up for expansion of its market share, if competitive raw materials can be ensured. The reduction in the duty for raw materials such as PTA, MEG and DMT is necessary to avoid an inverted duty structure once the duty on fibers is reduced.

The mandatory duty of 12 percent on branded garments and made ups may be converted to 8 percent optional duty. The benefits of the optional regime were available to all textile products until the mandatory duty was introduced for branded garments and made ups from 2011-12 onwards.

Garments and made ups are the most labor intensive and the final products in the textiles chain and play a major role in creating and sustaining demand for all textile products. They are not in a position to avail any cenvat credit since their suppliers are mostly in the exemption route.


Customs Duty and SAD on manmade fibers may be abolished and accumulated SAD may be refunded. This will help the textiles industry to source fibers from global markets whenever there is a shortage or price spiral in the domestic market.

Though SAD is cenvatable, most units in the industry are not in a position to avail this facility since they are in the exemption route for excise duty. Accumulated SAD is already being refunded to traders. This facility may also be allowed to the textiles industry in the context of the optional excise regime.

Must ReadView All

Pakistan's Finance Minister Mohammad Ishaq Dar presenting Budget 2017-18 in National Assembly in Islamabad on May 26. Courtesy: PID, Pakistan

Textiles | On 27th May 2017

Pakistan Budget 2017-18 proposes 4 new measures

To support the textile sector in Pakistan, finance minister Mohammad...

Courtesy: IRRC Institute

Apparel/Garments | On 27th May 2017

Up to 7.5 mn retail jobs in US at risk due to automation

About 6-7.5 million retail jobs in the US are likely to be automated...

Textiles | On 27th May 2017

Indian textiles ministry promotes wool sector

The ministry of textiles has taken multiple steps to promote the wool ...

Interviews View All

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Manuj Terapanthi

Transparent supply chain and fair trade will boost sustainable market

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Paolo Ocleppo
Sandvik Hyperion

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

Silke Brand-Kirsch
Schlegel und Partner

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
May 2017

May 2017

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


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search