Union Textile budget clearly lacks growth direction - N Reddy

05 Mar '07

3 min read

D. Narasimha Reddy says the budget for 2007-08 shows the government's failure to present any solution-driven agenda to handle the colossal crises the handloom weaver faces on the growth front and the unfair competition in the textile sector.

This budget lacks clear 'growth' direction, despite the talk of inclusive growth. These words are merely used to fill the gaps in ideas. To take a critical view the budget is a less than honest exercise as by a sleight of hand, it completely works against the interests of handloom sector.

In his budget speech (2006-07), the Finance Minister said “Several schemes, including schemes for life insurance and health insurance, were announced in the last Budget for the handloom sector. They are being implemented. The Cluster Development approach will continue. It is proposed to cover an additional 100 clusters at a cost of Rs.50 crore in 2006-07."

"Yarn depots will be established in different parts of the country to ensure uninterrupted supply of yarn to weavers. Just as 'woolmark' has gained recognition, it is proposed to launch a 'handloom' mark. A scheme similar to TUFS will be introduced for the handloom sector to provide interest subsidy on term loans. I propose to increase the provision for the handloom sector from Rs.195 crore to Rs.241 crore next year.”

This year, he said “A cluster approach for the development of the handloom sector was introduced in 2005-06 and 120 clusters have been selected. 273 new yarn depots have been opened in the current year and the Handloom Mark was launched. Government proposes to take up an additional 100-150 clusters in 2007-08."

More Textiles News - India...