Home / Knowledge / News / Textiles / Budget will boost cash flows of Indian textile firms: IRR
Budget will boost cash flows of Indian textile firms: IRR
02
Mar '13
The zero excise duty on cotton textiles at fibre, yarn, fabric and garment stages announced in the Union Budget 2013-14 will help reduce prices of end products, according to India Ratings & Research (IRR), a Fitch Group Company.
 
The removal of excise duty will boost demand for apparels amid weak consumer sentiment, low real wage growth and high inflation, the company said in a statement.
 
The boost in clothing demand is, in turn, expected to promote revenue growth in 2013 and improve operating profit and cash flows of the companies operating in the textile sector, it adds.
 
The Union Budget, presented by India’s Finance Minister earlier this week, proposes 12 percent excise duty on synthetic spun yarn at the fibre stage, but reduces the duty to zero from yarn to garment stage.
 
It has also extended the Technology Upgradation Fund Scheme (TUFS) for the Twelfth Five Year Plan (2012-17) period and allots Rs. 24 billion for technology upgradation. This is likely to encourage investments in powerloom modernization. However, the benefits of the same would only be reflected in the medium term, upon completion of uprgradation.
 
Overall, the policy measures announced in the Budget will together boost cash flows of textile companies in 2013.
 
But, broader concerns over volatility in raw material prices and sluggish export demand would remain, the statement said.
 

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 27th Jun 2017

Govt defers tax deduction at source provision under GST

E-commerce players in India will not be required to deduct tax on...

Apparel/Garments | On 27th Jun 2017

Future Group aims Rs 12,000 crore in fashion business

Future Group, which runs retail stores across India under various...

Textiles | On 27th Jun 2017

AEPC & NSDL to help exporters with GST compliances

Apparel Export Promotion Council (AEPC) and National Securities...

Interviews View All

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Paolo Ocleppo
Sandvik Hyperion

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

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Tony Ward
Tony Ward

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

Aditi Somani
Aditi Somani

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

Silvia Venturini Fendi
Fendi s.r.l

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

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

news category


Related Categories:
July 2017

July 2017

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

SUBSCRIBE


Browse Our Archives

GO


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