Home / Knowledge / News / Textiles / Budget 2015-16 evokes mixed reaction from textile industry
Budget 2015-16 evokes mixed reaction from textile industry
02
Mar '15
Union Budget 2015-16 presented by finance minister Arun Jaitley in Parliament on Saturday has evoked mixed response from the Indian textile industry.
 
Prem Malik, chairman, Confederation of Indian Textile Industry (CITI), said the Budget ignored the highly labour intensive textile industry which has significant potential for growth. In a statement, Malik said the only positive aspect of the Budget for the textile sector was the continuation of the optional excise duty regime.
 
He said fresh investments will be impossible under the Technology Upgradation Fund Scheme (TUFS) during 2015-16, owing to reduction in allocation for the scheme from Rs 1864 crore in 2015-15 to Rs 1520 crore for 2015-16. “There is no balance available for fresh investments under the scheme as of now,” he added.
 
According to CITI, increase in service tax to 14 per cent will have an adverse impact on the textile industry. The hike in effective rate of excise duty on manmade fibres from 12.36 per cent to 12.5 per cent under the current Budget will also negatively affect the industry, the statement said.
 
T Rajkumar, chairman, The Southern India Mills’ Association (SIMA), welcomed the Union Budget saying it has marked a good beginning to achieve the ‘Make in India’ vision of Prime Minister Narendra Modi. He thanked the government for extending the optional Cenvat route for cotton textiles and also for the announcement of implementing GST with effect from 1 April, 2016.
 
Terming the Budget as growth-oriented, SIMA said: “Huge plans on infrastructure developments including one lakh kilometre road, five mega power projects each with 4000 MW capacity, commencing the operation of second plant in Kudankulam nuclear power plant, development of minor ports, plug and play approval facilities, reduction of corporate tax from 30 per cent to 25 per cent in four years, and making EPF and ESI optional are certain measures which would facilitate and give enough confidence for investors in the manufacturing and service sectors.”
 
Apparel Export Promotion Council (AEPC) chairman Virender Uppal welcomed the decision in the reduction in corporate tax from 30 per cent to 25 per cent. However, he appealed to the finance minister that full reduction of five per cent may be given in the first year itself, instead of over the next four years.
 
He urged the Government that All Industry Dutydrawback rate should be enhanced immediately after taking into account the new incidence of service Tax, excise duty and increase of excise duty on diesel.
 
Commenting on the Budget, Harkirat Singh, managing director, Woodland, said, “This definitely is a step towards promoting production facilities in India thereby supporting ‘Make in India’ campaign.” (RKS)
 

Fibre2fashion News Desk - India


Must ReadView All

Respresentatives of over 30 Chinese companies in a meeting with officials of Kazakh Invest National Company; Courtesy: primeminister.kz

Textiles | On 17th Aug 2018

Kazakh-China cooperation in textiles explored in Astana

China and Kazakhstan have immense potential to cooperate in textiles...

Courtesy: Pexels

Textiles | On 17th Aug 2018

AWEX EMI closes at highest ever level of 2116ac clean/kg

The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI)...

Courtesy: VF Corporation

Apparel/Garments | On 17th Aug 2018

VF Corporation shifting global headquarters to Denver

VF Corporation, one of the largest apparel, footwear and accessories...

Interviews View All

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Representatives
Textile & apparel industry

GST is a complicated and lengthy process

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Yash Jain & Sanjeev Jain

Divyam Export, launched about 30 years ago, exports to 15 countries,...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

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

Leave your Comments


August 2018

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

news category


Related Categories:

Advanced Search