Chidambaram foresees a 'bright future' for textile industry
02 Mar '05
2 min read
Answering a question in a post budget interview on the All India Radio on 'what is your main offer to the industry, especially to textiles this time,' the Finance Minister Mr P Chidambaram replied:
"Textiles are in a very buoyant mood. Current year we think that an additional 20,000 crore rupees is being invested in the textile industry and next year we expect that another 30,000 crore rupees will be invested in textile industry, which means the textile entrepreneur envisages a very bright future.
We have cleaned up the excise regime for natural fibers. They can go through the zero duty regime, which is the biggest boost which textiles has got in many, many years.
This year I have cut the polyester filament rate from 24 to 16, that accounts for 80 percent of the man-made fiber and therefore, that will give a big boost.
Textile machinery duties have been cut very sharply on large number of textile machinery items. Large number of other textile related goods customs duty has been cut very sharply.
By and large I think textile industry is poised to do well and I will watch it very clearly and if necessary I will do more.
Clearly, after agriculture it is textile which is the biggest employer, which is India's oldest industry. Therefore, we will do everything that is necessary to make textiles modern, competitive and world-class."
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