Home / Knowledge / News / Textiles / Central Budget – a mixed bag for textile industry, CITI
Central Budget – a mixed bag for textile industry, CITI
01
Mar '11
Confederation of Indian Textile Industry has stated that Central Budget presented by Finance Minister, Shri Pranab Mukherjee in Parliament on 28th February 2011 is a mixed bag for textile and clothing industry.

Giving his reactions on the Budget, Shri Shishir Jaipuria, Chairman, CITI stated that the continuation of the optional scheme for excise duty in the case of yarn and fabric is a welcome feature of the Budget. Allocation of Rs.3000 crore to NABARD in phases for handloom cooperative societies will also be helpful to a large number of handloom weavers once the Scheme is finalized and announced by the Ministry of Textiles. He added that the reduction of customs duty from 7.5% to 5% on certain textile intermediates and inputs for technical textiles will be of some help to the nascent and potential technical textiles.

However, Shri Shishir Jaipuria stated that mandatory excise duty of 10% imposed on branded readymade garments and made-ups would not only have serious adverse impact to these highly labour intensive segments but would also have significant operational problems at the level of implementation.He pointed out that since most of the inputs for these segments would be coming through optional excise duty regime, there will be very little duty credit to be utilized for payment of excise duty by them. He also pointed out that most of the branded readymade garment production in India is outside the SSI segment and therefore SSI exemption will not be of much help. Also, this duty coupled with the SSI exemption has the potential to further fragment the readymade garments and made-ups industries. Shri Jaipuria requested Finance Minister to restore the optional excise duty regime for both branded readymade garments and branded made-ups.

Referring to the increase in excise duty for yarn and fabrics from 4% to 5%, Shri Jaipuria felt that since the optional regime continues to be applicable, this would not have any major impact on the industry.

Shri Jaipuria welcomed the reduction of excise duty on 40 specified textile machinery (List 2 of Notification NO.6/2011-CE) from 10 to 5%, but added that the impact of this reduction will be limited, since most of these machines are not manufactured in India. He added that imposition of 5% excise duty on automatic looms and projectile looms would add an avoidable duty burden on the machinery industry which will impact fabric manufacturers, including the decentralized powerlooms.

Shri Jaipuria welcomed the provision of around Rs.3,000 crore for TUFS, but requested government to resume fresh sanctions under the Scheme at the earliest, since these have been under suspension for a long time now.

Confederation of Indian Textile Industry (CITI)

Must ReadView All

Textiles | On 28th Apr 2017

Fix 5% GST rate for textile goods: Textile bodies

Uniform levy of 5 per cent Goods and Services Tax (GST) on all...

Textiles | On 28th Apr 2017

India lifts CVD imposed on Nepali Jute goods

The countervailing duty (CVD) that was imposed on Nepali jute...

Courtesy: Williamsburg Garment Company

Fashion | On 28th Apr 2017

'We have grown by staying small & maximising efforts'

The easiest way to go out of business is to be too big or expand too...

Interviews View All

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Kerem Durdag
Biovation II LLC

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

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Ritu Kumar
Label Ritu Kumar

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

Rupa Sood and Sharan Apparao
Nayaab

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

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:
April 2017

April 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



X