Home / Knowledge / News / Textiles / Central Budget – a mixed bag for textile industry, CITI

Central Budget – a mixed bag for textile industry, CITI

01
Mar '11
Confederation of Indian Textile Industry has stated that Central Budget presented by Finance Minister, Shri Pranab Mukherjee in Parliament on 28th February 2011 is a mixed bag for textile and clothing industry.

Giving his reactions on the Budget, Shri Shishir Jaipuria, Chairman, CITI stated that the continuation of the optional scheme for excise duty in the case of yarn and fabric is a welcome feature of the Budget. Allocation of Rs.3000 crore to NABARD in phases for handloom cooperative societies will also be helpful to a large number of handloom weavers once the Scheme is finalized and announced by the Ministry of Textiles. He added that the reduction of customs duty from 7.5% to 5% on certain textile intermediates and inputs for technical textiles will be of some help to the nascent and potential technical textiles.

However, Shri Shishir Jaipuria stated that mandatory excise duty of 10% imposed on branded readymade garments and made-ups would not only have serious adverse impact to these highly labour intensive segments but would also have significant operational problems at the level of implementation.He pointed out that since most of the inputs for these segments would be coming through optional excise duty regime, there will be very little duty credit to be utilized for payment of excise duty by them. He also pointed out that most of the branded readymade garment production in India is outside the SSI segment and therefore SSI exemption will not be of much help. Also, this duty coupled with the SSI exemption has the potential to further fragment the readymade garments and made-ups industries. Shri Jaipuria requested Finance Minister to restore the optional excise duty regime for both branded readymade garments and branded made-ups.

Referring to the increase in excise duty for yarn and fabrics from 4% to 5%, Shri Jaipuria felt that since the optional regime continues to be applicable, this would not have any major impact on the industry.

Shri Jaipuria welcomed the reduction of excise duty on 40 specified textile machinery (List 2 of Notification NO.6/2011-CE) from 10 to 5%, but added that the impact of this reduction will be limited, since most of these machines are not manufactured in India. He added that imposition of 5% excise duty on automatic looms and projectile looms would add an avoidable duty burden on the machinery industry which will impact fabric manufacturers, including the decentralized powerlooms.

Shri Jaipuria welcomed the provision of around Rs.3,000 crore for TUFS, but requested government to resume fresh sanctions under the Scheme at the earliest, since these have been under suspension for a long time now.

Confederation of Indian Textile Industry (CITI)


Must ReadView All

Pic: Shutterstock

Textiles | On 22nd Feb 2020

Pharr sells Pharr High Performance to Coats Group

Pharr, a provider of differentiated textile products and assorted...

Pic: Shutterstock

Textiles | On 22nd Feb 2020

TOAI highlights importance of textiles in auto industry

The first edition of the conference 'Textile Opportunities in a...

Pic: Shutterstock

Textiles | On 22nd Feb 2020

Cocona's 37.5 fibres to have new biodegradable additive

All of the 37.5 staple fibres and filament yarns by Cocona, will now...

Interviews View All

Shiladitya K Joshi, Truetzschler India Private Limited

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Awen Delaval, Samatoa

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Amardeep Singh, Orient Craft

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Lucilla Booyzen,

Lucilla Booyzen

South African Fashion Week (SAFW) is a B2B marketing platform for fashion, ...

Suresh P Bagrecha,

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Herbert Guebeli,

Herbert Guebeli

Switzerland-based Sedo Engineering develops technologies for the denim...

Frank Heislitz, Freudenberg

Frank Heislitz
Freudenberg

Freudenberg Performance Materials is a leading global manufacturer of...

Chunyi Zhi, City University of Hong Kong

Chunyi Zhi
City University of Hong Kong

<div><b>Chunyi Zhi</b>, associate professor in the Department of Materials ...

Kevin Nelson, TissueGen

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Nisha Chanda, Whistling Woods International School of Fashion

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Varsha Wadhwa, VW

Varsha Wadhwa
VW

Coming from a family that ran a business of jute and linen mills since...

Sidharth Sinha, Sidharth Sinha

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


February 2020

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


Advanced Search