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: Raymond

Apparel/Garments | On 28th Jun 2017

Raymond plans to invest Rs 1,400 crore in Amravati plant

Raymond, Indian textiles and apparel major, has decided to invest Rs...

Textiles | On 28th Jun 2017

GST and textiles industry: Analysis and opinion

The Goods and Services Tax (GST) is at long last all set to be rolled ...

Textiles | On 28th Jun 2017

India probing dumping of polyester yarn by China

Indian government is probing anti-dumping allegations against a...

Interviews View All

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Saket Garg
Garg Corporation

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

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Lynda Kelly
Suominen Corporation

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

Larry L Kinn
Suominen Corporation

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

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Silvia Venturini Fendi
Fendi s.r.l

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

Igor Chapurin
Chapurin

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

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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