Textile industry expects favourable Budget 2016-17

26 Feb '16

2 min read

Continuation of optional duty on cotton textiles, exemption of excise duty on shuttleless looms, reduction in excise duty on furnace oil, greater focus on technical textiles, and reduction in import duty on raw materials are some of the demands that textile industry is looking forward in Union Budget 2016-17, to be presented in Parliament on February 29.

“There is an optional duty on cotton textiles. This needs to be continued as imposition of mandatory excise duty will seriously affect the operations of the entire cotton textiles industry. The textile industry is keenly looking forward to the Budget,” Siddhartha Rajagopal, executive director of The Cotton Textiles Export Promotion Council (TEXPROCIL) told Fibre2Fashion.com

Shuttleless looms, which attract 6 per cent excise duty, should be exempted from duty to boost the powerloom sector, he adds. Excise duty on furnace oil should be reduced from 14 per cent to 8 per cent as the cost of power generation through furnace oil has substantially increased and become unviable.

Additionally, it is high time to be focused on value-added products like technical textiles, according to Avinash Mayekar, MD and CEO of Suvin Advisors. Technical textiles need a completely different outlook. If more efforts are made in this direction, India has the potential to become a hub for technical textiles under the 'Make in India' drive.

“We need to attract more FDI in this sector as India's share is minimal in the global market,” he says. We need an exhaustive country policy with 10-years-projection representing all the fibres and all the sectors.”

“For technical textiles, subsidies should be increased to encourage new entrepreneurs to be a part of the textiles industry,” Dr NN Mahapatra, vice president – Business Development of Colorant India said on a similar note.

He also said that import duty should be reduced on raw materials to encourage manufacturing in the country. There is a need for more textile parks, and subsidies should be given to encourage investment in textile parks and 'Make in India' scheme.

Citing difficulty in getting approval from state governments as the main hurdle in successful implementation of textile parks, Mahapatra suggested that Central government should intervene and instruct state governments to give approvals and provide subsidies. (MCJ)

Fibre2Fashion News Desk - India

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