Home / Knowledge / News / Textiles / Rationalize duties to stimulate MMF textile exports
Rationalize duties to stimulate MMF textile exports
09
Feb '10
The global financial meltdown and consequent economic recessions in developed economies have clearly been major factor in India's economic slowdown. Every developing country has suffered to a varying degree. No country including India remained immune to the global economic shock.

To counter the negative fallout, the Government responded by providing three focused fiscal stimulus packages to boost demand and increase expenditure on public projects to create employment.

Despite these initiatives, textile sector, especially the power loom industry still has a long way to recover. This is mainly because of the anomaly in the fiscal structure of excise duty on raw materials.

Exporters of man-made fabrics purchase fabrics from the market through Non-CENVAT routs. Cost of the fabrics bear Excise, State VAT duty paid on yarn which is not compensated.

DEPB only considers the routine Custom Duty paid (without including anti-Dumping Duty). Besides Excise/State duty on capital goods, dyes-chemicals, machinery spare parts, Service Tax, etc. are also not compensated.

If exports of garments and made-ups of synthetic fibres need to grow, the supply of polyester yarn to the manufacturers of the fabrics should be made either at the same cost that of Chinese yarn or preferably lower than Chinese cost.

It is possible for the yarn manufacturers in India to supply the yarn at a cheaper rate than Chinese supplier; because the raw material cost viz. PTA and MEG is cheaper in India by 24% and 15%, respectively than in China.

Click here to read the complete article.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: UPM Raflatac

Apparel/Garments | On 17th Jan 2017

New residue free textile label adhesive from UPM Raflatac

Producer of self adhesive label materials UPM Raflatac, has...

Courtesy: Authentic Brands Group

Apparel/Garments | On 17th Jan 2017

Teen retailer Aéropostale reopens 500 stores in US

Teen apparel retailer Aéropostale has reopened 500 stores in the US,...

Courtesy: Centric Software

Information Technology | On 17th Jan 2017

Centric releases version 6.0 of PLM solution

Centric Software, the leading PLM solution for fashion, retail,...

Interviews View All

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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
January 2017

January 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