The Union Budget 2013-14 presented by the India’s Finance Minister P Chidambaram has brought cheer for the textile and garment industry as the Central Government has accepted their long standing demand for removal of excise duty on branded garments and extending several schemes and incentives in the 12th Five Year plan.
Mr. A Sakthivel, chairman of Apparel Export Promotion Council (AEPC) and president of Tirupur Exporters Association (TEA), told fibre2fashion, “We welcome the Union Budget and thank the Finance Minister for accepting the long-awaited request of textile and garment industry for removal of excise duty imposed on branded apparels sold in domestic market.”
“We also welcome the move for not increasing direct and indirect taxes, restoring zero excise duty for cotton and manmade sector at the yarn, fabric and clothing stage, continuance of Technology Upgradation Fund Scheme (TUFS) in the 12th Five Year Plan, allotting Rs. 24 billion for powerloom sector, Rs. 500 million for textile processing and Rs. 500 million for apparel park as well as Rs. 10 billion for skill development,” he adds.
Echoing him, Mr. SV Arumugam, chairman of Confederation of Indian Textile Industry (CITI), says, “Restoring the optional excise regime for branded garments and made-ups is the positive factor in the Union Budget.”
Commenting on the Union Budget, Mr. Rahul Mehta, president of Clothing Manufacturers Association of India (CMAI), says, “The revertal to the 'optional route' not only provides zero percent duty to the clothing industry, but will also provide some form of protection to the domestic industry from cheap imports. It will further encourage foreign retailers to set up shop in India to manufacture their requirements in India, rather than import from other countries."
“There will be a relief for the apparel manufacturers in the country because of the removal of excise duty on labeled clothing in domestic market,” says Mr. Devkishan Manghani, president of Federation of Surat Textile Traders Association (FOSTTA).
Mr. KK Agarwal, president of Northern India Textile Mills Association (NITMA), says, “We welcome the Union Government’s decision of restoring zero excise duty on cotton and man-made fabrics and allotting fund for powerloom and handloom sectors.”
“The major welcoming feature of the budget is the zero excise duty on branded readymade garments and made-ups,” says Mr. S Dinakaran, chairman of Southern India Mills Association (SIMA).
Mr. MC Rawat, secretary of Madhya Pradesh Textile Mills Association (MPTMA) commends the Finance Minister for restoring the ‘zero excise duty route’ for cotton and manmade sector.
Fibre2fashion News Desk - India