Forthcoming Budget - Industry players optimistic

16 Feb '08

6 min read

Each year, entire India eagerly waits for the month of February to come to an end as the Finance Minister declares Union budget which plays a decisive role in the country's economic progress.

The Central Budget over the last four years had provided significant relief to the textile industry by way of rationalizing the fiscal duty structure and reducing duties. However, recent rupee appreciation has caused uncertainty on textile and clothing industry's future and players from the sector want intervention of the Government in the forthcoming Budget.

In order to sustain development, textile industry expects the export policies to be more simplified with liberal excise and customs duty structure. Different players have prepared their wish list for the forthcoming budget hoping that it will provide some concessions and help them to achieve their targets effectively for the year 2008-09.

Fibre2fashion, in its attempt to understand the industry expectation from Union Budget, gathered views from important manufacturers of synthetic fibre, fabrics and machineries with respect to policy measures, exemptions on excise, export and import duties.

Dr V G Habbu, Vice President, of Reliance Industries Polyester Sector, stated, “In my opinion, the Government should, in the first place, take note of the new REACH regulation that has come into effect from 1 June 2007, in Europe. This will have long term impact on the exports to Europe. Hence, fiscal and institutional support is a must for chemical industry in general (and Textile industry in particular) for complying with REACH.”

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