Global Apparel Market – An Overview | Watch NOW! | Ad
Home / Knowledge / News / Textiles / 'Central Budget positive for textile industry'
'Central Budget positive for textile industry'
Feb '17
The Union budget 2017-18 announced by the finance minister Arun Jaitley on Wednesday has been appreciated by the textile sector. Reduction of corporate tax from 30 per cent to 25 per cent for industries with turnover up to Rs.50 crore will also benefit a large number of units in the textile sector, according to the textile representatives.

Explaining the proposals that would benefit the garment industry, Rahul Mehta, president of The Clothing Manufacturers’ Association of India (CMAI) said that the reduction of corporate tax to 25 per cent for small companies with turnover up to Rs.50 crore will cover a large number of garment units since the industry is mostly in the SME sector. “Reduction in the individual income tax rate from 10 per cent to 5 per cent for individuals with income ranging from Rs 2.5 to 5 lakh and additional allocations for agriculture and rural sectors will improve the purchasing power of rural poor who form a large part of the clientele of unorganised and small garment manufacturers,” said Mehta.

“The announcement to reduce the income tax rate for MSMEs will benefit cores of small business units in both the manufacturing and services segments. It is a clear encouragement to businesses to move over to the formal economy,” said Pankaj Patel, Federation of Indian Chambers of Commerce and Industry president. “The reduction in the tax rate for individuals in the lowest income tax slab will leave more disposable income in the hands of the people and will enhance consumption demand in the economy which had taken evident hit due to the demonetisation move. The finance minister has gone the Keynesian way to stimulate growth in the economy through higher demand,” added Patel.

Terming the budget as positive, wide ranging and inclusive, Ujwal Lahoti, chairman of Texprocil appreciated that the government will continue to take measures to boost growth as well as employment generation. Lauding the reduction in corporate income tax for medium and small enterprises up to 50 crore turnover, he said that it will benefit a large number of MSMEs in the textile sector also.

“Budget 2017-18 is one of the best budgets in the recent times. The government has also widened and deepened the additional drawback scheme. As far as textile industries are concerned the government has already given us what we were looking for. It is commendable that the government has retained all the schemes for textiles. It is a very balanced and realistic budget with the government focusing on overall development of the economy,” Rakesh Vaidya, former chairman of Apparel Export Promotion Council told Fibre2Fashion.

“The policies introduced in the budget will be fruitful in the long run. With people spending more, our business will also grow. Reduction in the income tax deduction of individuals is good news. It will have a direct impact on their purchasing capacity,” said Southern Gujarat Chamber of Commerce and Industry president BS Agarwal.

Speaking of investing in infrastructure, Jitendra Vakharia, president of South Gujarat Textile Processors Association said, “This budget has focused on improving the condition in the rural areas. This will benefit the industries, particularly textiles, with the availability of raw materials in abundance and at an amiable price.”

“Tax reduction for MSMES will provide some cushion to the textile MSMES, both in production and exports. Further reduction of customs duty on nylon is likely to increase the competitiveness in the nylon product chain manufactured in India,” said The Synthetic & Rayon Textiles Export Promotion Council deputy director Kripabar Baruah.

Fibre2Fashion News Desk – India

Must ReadView All

Trump signs revised free trade agreement with S Korea

Textiles | On 25th Sep 2018

Trump signs revised free trade agreement with S Korea

President Donald Trump signed a revised free trade agreement with...

L-R: Jonathan Akeroyd, Donatella Versace, John D Idol. Courtesy: Rahi Rezvani

Fashion | On 25th Sep 2018

Michael Kors to acquire Versace; to be renamed Capri

Michael Kors Holdings Limited, a global fashion luxury group, has...

'India can take up lack of capacity in US, China markets'

Textiles | On 25th Sep 2018

'India can take up lack of capacity in US, China markets'

India can now take up the lack of capacity in the US and Chinese...

Interviews View All

Abhishek Ganguly, Puma India

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Headhonchos, Indian fashion industry

Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Top executives, Fashion houses, India

Top executives
Fashion houses, India

With technology, it has become easier to ensure IPR

Tejas N Patel, Navin D Patel,

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Umang Banthia,

Umang Banthia

Established in 2005, SL Banthia Textiles manufactures coated fabrics....

Ravindra Jain, Ashish Baid,

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Mr Hartmann Huth, Trevira GmbH

Mr Hartmann Huth
Trevira GmbH

Trevira GmbH is an innovative European manufacturer of high-value branded...

Ashok Desai, Bombay Textile Research Association

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Justin Chan & Shyam Gollakota, University of Washington

Justin Chan & Shyam Gollakota
University of Washington

A fabric that can store data without any electronics or batteries has been ...

Anisha Chaudhari, Threads & Shirts

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

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

Bani Batra,

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on

Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

October 2018

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

news category

Related Categories:

Advanced Search