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Textile & Leather industries to benefit in Budget-2007
06 Feb '07
1 min read
The Finance Ministry is considering reducing custom duties for machinery used by Textile and Leather industries to 5 percent in forthcoming Budget 2007 which will help these industries to modernise and upgrade.
Import duty on majority of equipment imported by textile industry is 10 percent at present while it is 12.5 percent for leather industry.
Decision to reduce import duty on capital goods to 5 percent has already been finalised for textile and leather industries, officials said.
Textile and Leather goods industries faced high global competition from low-cost economies like Bangladesh, Pakistan and south-east Asian countries hence Commerce Department had sought reduction in customs duty.
India has the largest resource-base for the leather industry in the world but accounts for just 2.56 percent of the global market with leather product export reaching just $2.6 billion compared to over $30 billion worth of leather goods exported by China which accounts for about 22 percent.
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Import duty on majority of equipment imported by textile industry is 10 percent at present while it is 12.5 percent for leather industry.
Decision to reduce import duty on capital goods to 5 percent has already been finalised for textile and leather industries, officials said.
Textile and Leather goods industries faced high global competition from low-cost economies like Bangladesh, Pakistan and south-east Asian countries hence Commerce Department had sought reduction in customs duty.
India has the largest resource-base for the leather industry in the world but accounts for just 2.56 percent of the global market with leather product export reaching just $2.6 billion compared to over $30 billion worth of leather goods exported by China which accounts for about 22 percent.
GET LATEST UPDATE ON UNION BUDGET 2007-2008
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