Indian Budget 2013-14 provides sops to textile industry

28 Feb '13

2 min read

Finance Minister P Chidambaram today presented Union Budget 2013-14 in Parliament. Some of the key incentives extended to India’s textile and apparel industry in the Budget are as below:

• Technology Upgradation Fund Scheme (TUFS) for textile sector extended to 12th Plan with an investment target of Rs. 1510 billion.

• The Budget provides Rs. 24 billion in 2013-14 for modernization of powerloom sector.

• Apparel Parks to be set up under Scheme for Integrated Textile Parks (SITP). To incentivize Apparel Parks, the Finance Minister allocates Rs. 500 million to the Ministry of Textiles to provide an additional grant of up to Rs. 100 million to each Park.

• A new Integrated Processing Development Scheme will be implemented in the 12th Plan with an outlay of Rs. 5 billion to address the environmental concerns of the textile industry. The Finance Minister allocates Rs. 500 million in 2013-14 for the scheme.

• Handloom weavers to get working capital and term loans at a concessional interest of 6 percent. 150,000 individual weavers and 1,800 primary cooperative societies will benefit in 2013-14.

• An additional sum of Rs. 960 million to be allocated in 2013-14 to the Ministry of Textiles for interest subvention to handloom weavers.

• Rs. 8.5 billion outlay during the 12th Plan for Scheme of Fund for Regeneration of Traditional Industries (SFURTI) for promotion of Khadi, village and coir industries.

• The Finance Minister proposed to leverage assistance from Multilateral Development Banks to extend SFURTI to 800 clusters during the 12th Plan, which would benefit 400,000 artisans.

• To protect domestic sericulture, import duty on raw silk increased from 5 percent to 15 percent.

• The Finance Minister accepts the demand of readymade garment industry to restore the ‘zero excise duty route’ for cotton and manmade sector (spun yarn) at the yarn, fabric and garment stages.

• Handmade carpets and textile floor coverings of coir or jute will be totally exempted from excise duty.

Fibre2fashion News Desk - India

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