Home / Knowledge / News / Textiles / TEXPROCIL Chairman welcomes Economic Stimulus Package
TEXPROCIL Chairman welcomes Economic Stimulus Package
09
Dec '08
Shri V.S.Velayutham, Chairman of The Cotton Textiles Export Promotion Council (TEXPROCIL) has welcomed the much awaited economic stimulus package announced by the Hon'ble Prime Minister, for the economy in general and the export sector in particular.

The package announced incorporates most of the demands made by Texprocil with the government. However, considering the enormous challenges faced by exporters of textile goods from India, industry expects some more measures to be announced in the near future.

An across-the-board cut of 4% in the ad valorem Cenvat rate would give a fillip to the manufacturing sector and enable reduction in the prices.

He has also welcomed the extension of interest rate subvention of 2% on pre and post shipment credit, the additional fund of Rs.1100 cr. for refund of terminal excise duty and additional allocation of Rs.1400 cr. to clear the entire backlog in the TUF Scheme, which would enhance cash flow of the exporters. In this connection, he recalled his recent meeting with the former Finance Minister who had in principle agreed to consider additional allocation for the TUFS fund and the Interest rate subvention.

Mr. Velayutham has also welcomed the refund of service tax on services provided by C&F agents to exporters and also the increase in threshold limit of refund of service tax paid by exporters on foreign commission agent services from 2% of FOB value to 10% of FOB value.

Government's move to provide back-up guarantee to ECGC to the extent of Rs.350 crore will also help the exporters in getting more orders from the buyers in the developed markets such as US and EU, even though the demand in these markets has declined substantially.

Appreciating the government for taking up the cause of medium, small and micro enterprises (MSMEs) sector, he said that various measures announced would definitely support the growth of Indian textile industry which is predominantly in the SME segment.

The decision to permit availment of drawback benefit simultaneously with refund of service tax paid in respect of exports was a long standing demand of the exporting community and Mr. Velayutham appreciated the positive decision taken by the Government in this regard.

While the steps taken by the Government would lead to easing of liquidity/credit needs of the exporters Mr. Velayutham appealed to the Government to consider increase of incidence of duty drawback and DEPB as the industry is eagerly awaiting the announcement in this regard. Pointing out that China, the largest textile exporter is supporting its textile sector in a big way and has already increased export tax rebates from 14% to 17% with effect from 21/11/2008 aimed at reducing the impact of the global economic slowdown, he urged the government to announce the increase in Duty drawback/DEPB as the markets once lost are difficult to recapture.

He also pointed out that the textile industry was looking towards a moratorium on the loans for a period of 2 years which had been obliquely addressed in the growth stimulus package announced by the Reserve Bank of India on 6th December 2008. He requested the Reserve Bank to clarify the matter explicitly so that the textile industry could face the challenges of the economic slowdown.

Cotton Textiles Export Promotion Council


Must ReadView All

15 trade associations urge nations to safeguard WTO system

Apparel/Garments | On 15th Dec 2017

15 trade associations urge nations to safeguard WTO system

Fifteen trade and industry associations from across the world have...

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Apparel/Garments | On 15th Dec 2017

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Strategic location, modern factory facilities and proximity to the...

Courtesy: H&M

Apparel/Garments | On 15th Dec 2017

H&M, Alibaba extend collaboration

H&M has extended collaboration with Alibaba with the opening of its...

Interviews View All

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Urmil Arya

Sushila International, a well established textile organisation established ...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Larry L Kinn
Suominen Corporation

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

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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

December 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


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