Industry & Economy
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Budget
`Not enough in Budget for textile industry'
Our Bureau
Mumbai
,
March 1
FOR the textile industry, the Finance Bill of 2005-06 did offer some cheer.
Despite the enhancement of the TUF scheme, the 10 per cent capital subsidy scheme for the textile processing sector, and the Customs duty reduction on textile machinery, industry representatives say it wasn't quite enough.
According to Mr B.K. Patodia, Chairman, The Cotton Textiles Export Promotion Council, while the Budget was forward-looking, the request to reduce excise duty of 16 per cent on textile machinery was denied.
Further, the excise duty on polyester staple fibre should have been reduced from the current 16 per cent. Both measures would have made exports of blended made-ups and fabrics more competitive.
Mr Arvind Poddar, President, Federation of All-India Textile Manufacturers' Association, said that the demands of man-made textile industry for a level-playing field had been largely ignored. The reduction of excise duty on PFY (polyester filament yarn) and bringing texturised yarn into the scheme of optional duty of 8 per cent did not bring parity between man-made textiles and cotton textiles.
Though the Finance Minister said the sector had the potential to create 1.2 crore jobs in the next five years, both Mr Poddar and the Clothing Manufacturers' Association of India President, Mr Premal Udani, were disappointed that were no reform initiatives on labour.
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