Pre budget growth enhancement measures for textile industry
23 Dec '05
2 min read
In a pre budget recommendation, The Federation of Indian Art Silk Weaving Industry (FIASWI) has put up several suggestions for enhancing growth of textile industry to the Central government.
It refers to extension of five percent concessional customs duty to value adding textile machines, lowering of excise duty and liberal import of textile machinery spare parts.
The rise in demand for ready made garments made of knitted fabrics, has increased demand for these machines. The imported warp knitting machines manufacture such knitted fabrics.
Today non-woven textiles, is one of the biggest growth avenues of the textile industry. It adds value to the fabrics, creating export grade material which results in foreign exchange earning.
These pricey machines coupled with high customs duty makes it even more costlier a proposition for the textile businessmen to import them. This is an obstacle in upgrading textile industry, said FIASWI Chairman Arun Jariwala.
The Federation has sought reduction in excise duty on textile machinery to eight percent, as the excise duty of 16 percent, after adding sales tax and other local levies, works out to be more than 25 per cent.
It would like the recommendations of the Special Study Group on Textiles for liberal imports of textile machinery to be implemented.
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