Textile and apparel sector hopes on India's Union Budget 2005
25 Feb '05
3 min read
The air of expectancy is rising as the B-day approaches fast.The Finance Minister Mr P A Chidambaram and his team are working overnight working on the Indian Budget for the Financial Year 2005-2006.
The textile industry has a lot at stake in this budget and will it bring cheer or doom is anybody's guess! But, from the textile and apparel sector view point, there are definite Ayes and Nays, which Mr Chidambaram should pay attention to and ultimately, frame his budget.
AYES FOR
• Further correction in existing annomalies expected
• Rationalisation in duty structure
• Dereservation of 26 items under the small scale industries sector, including the knitware segment
• Creation of a special fund, clubbing the apparel park scheme and textile centre infrastructure development scheme to provide assistance of up to Rs 50 crore
• Enhancement of the up-front subsidy for SSI sector under TUF Schemes from 12% to 15% per cent
• Credit linked capital subsidy under TUFS to be up to investment of Rs 60 lakh may be enhanced to Rs 1 crore
• Manmade sector problems to be addressed (16% to be brought down to 8%, Polyester Filament Yarn at 25%, and 16% on others, currently)
• New incentive schemes for handloom, powerloom and processing sectors
• Consessions on imported textile machinery including simplified import procedures
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