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Rationalization of duty structure for synthetic fibers & filament expected

26 Feb '07
3 min read

Indian industry has substantially hiked investments in manufacturing of textile and improved on their scale of operation but the gap is still huge between the investments required. The TUFs may be extended with similar interest subsidy but offering benefit and guiding investment in the priority sectors of the textile industry such as processing and garmenting.

Most textile machinery attract 5 percent customs duty. It is desirable that all capital goods should be at a uniform rate of 5 percent duty.

One of the barriers for large scale investment in apparel making is the existing inflexibility in labour laws as benchmarked with the competing nations like China, neighbouring countries, etc. Trust we progress from intent to policy change with respect to the existing labour laws and provide the much need flexibility.

Textile is a capital, labour and power intensive industry with a long value chain and suffers from higher transaction cost and higher power cost. Industry would be eagerly looking forward to firm initiatives to simplify the procedures and processes to slash transaction cost and a definite action in ensuring availability of power at affordable cost. It has been a significant disadvantage for local manufacturers.

Lastly, textile industry needs to be fully integrated under VAT to enable the industry to avail input credit across the value chain from fiber to apparel to retail.

The various initiatives like tax reforms, TUFs, etc. have turned the textile industry into a vibrant growing industry. The remaining initiatives will make Indian textile industry a dominant global player.

Fibre2fashion News Desk - India

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