Benefits for Indian textile, leather and related sectors in the Union Budget 2005
28 Feb '05
3 min read
Union Budget 2005-06 that was presented to day by Mr P Chidambaram in the morning today, carries the following benifits for the textile, polyester, leather footwear and jewellery sectors. They are listed as follows:
Textiles:
• Polyester duty cut
• Machinery to cost less
• Duties of Manmade Yarns - Polyester, Filament
Yarns reduced to 15%
• To invest Rs 30,000 crore in textiles in FY06
vs Rs 20,000 crore
• To extend insurance scheme for 20 lakh handloom
weavers
• 30 items dereserved in textile sector
Schemes:
• 10% Cap Subsidy Plan For Textile Processing
Sector
• TUF scheme to continue
• To launch manufacturing competitiveness plan
for SMEs
• To ask RBI to open window for ECBs for micro-
finance firms
• Hike in funds for technological improvements
• To extend insurance scheme for 20 lakh handloom
weavers
General:
• Leather & footwear industry customs duty
reduced from 20% to 5%
• Customs duty on industrial raw materials cut to
10%
• VAT to eliminate cascading effect of sales tax
• Pension scheme to be extended to unorganised
sector
• Processing sector to gain on 10% capital subsidy
• India infrastructure borrowing limit Rs 100 bln
next FY
• Corporate tax for domestic companies to be 30 %
with 10% surcharge
• Imitation jewellery to be cheap, branded
jewellery to attract 2% excise duty – no levy
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