With the Union Budget nearing by, industry players have started preparing strategies for the year ahead. Each company expects to see itself satisfied after the Mr P Chidambaram announces the Budget.
Mr Gautam Hari Singhania, Chairman and Managing Director, Raymond Ltd, an Indian textile major, has prepared his wishlist for the up-coming budget.
In an exclusive interview with Fibre2fashion, the Chairman told, "The Indian economy has been growing by about 8 to 9 percent and if this momentum continues then we will see a very bright future for India. The Textile Industry has been a major contributor to India's growth and it is one of the largest employers in India.”
Further, Mr Gautam Hari Singhania informed, “The appreciating rupee is already impacting the industry. The Government should consider the case of the textile sector with topmost priority and should encapsulate incentives for the industry in the forthcoming budget to provide a fillip to dwindling exports.
"The rising value of the rupee against the major currencies is the biggest challenge for the sector as the exports have almost lost the comparative advantage on the pricing front. The situation has further worsened because while the Indian rupee has appreciated by 12-15 percent, the currency of Pakistan, Bangladesh and China has appreciated marginally thereby making their industries significantly more competitive than ours at least on the commodity side."
The Raymond head asserted, “The government should extend incentives for boosting exports. If there is any kind of sops for the textile industry that the finance minister can do, it will help industry tide over this problem. Service tax levied on the exporters should be removed.”
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Fibre2fashion News Desk - India
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