• Chemicals & dyeing industry on tax reliefs
• Technical textiles consessional 5 percent customs duty relief, creation of technical textiles base and other innovative valued add in the textile chain
• High Performance fibres and yarns import at 5% or Rs 15 per Kg
• Special fund for apparel & garment parks
• Modernising and technical upgradation of the processing sector
NAYES FOR
• Fresh taxes, levies and cess increases
• Cut in any existing incentives or schemes that have overall benifitted the industry
• Rise in service Tax, Mr Chidambaram, please!
• Hike in corporate tax
• Complicated import procedures
GROWTH AREAS
• Conventional textiles and apparels during 2004-8, are expected to grow at the rate of CAGR of 8% to about US $51 billion while technical textiles is likely to achieve a CAGR of 11% at $9.15billion
• Exports to US & EU will go up
• Consolidation, M&A to take place
• FDI and domestic investments to go up in the sector
• More US retailers eyeing for Indian Outsourcing market
• Machinery sales to go up as new units come up and modernisation undertaken
• SSI units may change track, either grow or downgrade
• Ancilliary units to get a shot in the arm due to incentives and business comining back to them
ing back to them
• Technical and innovative textile areas will come in limelight
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Union Budget 2005-2006
Source: fibre2fashion.com
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