Home / Knowledge / News / Textiles / 'Budget has not addressed key issues' - Shri R.K. Dalmia
'Budget has not addressed key issues' - Shri R.K. Dalmia
06
Jul '09
Shri R.K. Dalmia, Chairman, CITI
Shri R.K. Dalmia, Chairman, CITI
Shri R.K. Dalmia, Chairman, CITI has welcomed the substantial increase in allocation for Technology Upgradation Fund Scheme.

The allocation has been increased from Rs.1090 crore last year to Rs.3140 crore this year. Because of inadequate budget allocation, there has been a backlog of more than one year in disbursements of TUFS assistance. Shri Dalmia stated that increase in budget provision would be able to remedy this situation substantially.

Reintroduction of 4% optional excise duty for cotton textile products is also a welcome step since this would allow textile companies to use cenvat credit on capital goods, dyes and chemicals, packing materials etc.

Shri Dalmia also welcomed extension of 2% interest subvention on export credit from September 2009 to March 2010 but added that the industry was expecting the subvention to be restored to the original rate of 4% which has not been done. Abolition of fringe benefit tax and commodity transaction tax are also welcome features of the Budget, Shri Dalmia added.

Referring to the negative proposals in the Budget, Shri Dalmia pointed out that mandatory excise duty on man-made fibres, filaments and their raw materials has been increased from 4% to 8% which would make fibres even more uncompetitive than they already are. Increase of MAT from 10% to 15% on book profit will also have a negative impact, though very few companies in the textile sector are making profits right now. On service tax, certain services have been exempted and in the other services, the procedure for reimbursement has been simplified by introducing self-certification and certification by Chartered Accountants. Shri Dalmia hoped that this would take one irritant out for the exporters.

While increased allocation for integrated textile parks and announcement of two mega parks for handlooms and powerlooms are welcome, the benefit of these measures would take a while to materialize.

Shri R.K. Dalmia stated that nothing has been done in the Budget to address the important issues of power cost and working capital cost that the textile and clothing industry is facing.

Shri Dalmia stated that the Budget was a missed opportunity for Government to pull the export oriented and labour intensive T&C industry out of its current crisis. The proposals are a mixed bag of certain positive steps and certain negative steps and these do not have the potential to bring the industry back to the path of growth in production as well as exports.

CONFEDERATION OF INDIAN TEXTILE INDUSTRY (CITI)

Must ReadView All

Textiles | On 28th Mar 2017

India may impose duty on elastomeric filament yarn

The Government of India is likely to impose anti-dumping duty on...

Courtesy: Lee Cooper

Apparel/Garments | On 28th Mar 2017

CCI clears FLFL proposal to divest Lee Cooper

The Competition Commission (CCI) of India has approved the proposal...

Textiles | On 28th Mar 2017

Bardoli CEFC to benefit south Gujarat MSMEs

India’s first common engineering facility centre (CEFC) at Bardoli,...

Interviews View All

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Larry L Kinn
Suominen Corporation

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

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Tony Ward
Tony Ward

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

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
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search