Government has been encouraging industries in general by providing an enabling macro economic environment; non distortionary and internationally competitive tax rates; and infrastructure support. Initiatives taken for the development of food procession, leather products, footwear, textiles, tourism and construction in Budget 2007-08 include:
• Technology Upgradation funds scheme for textiles is proposed to be continued in the Eleventh Five Year Plan;
• Additional integrated textiles Parks have been sanctioned for enabling textile sector to meet global demand;
• A cluster approach for the development of handlooms sector was introduced in 2005-06. Addition 100-150 clusters are proposed to be taken up in 2007-08;
• A credit policy for small and medium enterprises was announced in August 2005. As a result of this outstanding credit to SMEs increase from Rs.135,200 crore at the end of December 2005 to Rs.173,460 crore at the end of December 2006;
• Excise duty exemption limit for small scale industries was raised to Rs.1.5 crore;
• Biscuits whose retail sale price does not exceed Rs.100 per kilogram have been exempted from excise duty. All kinds of food mixes including instant food mixes have also been exempted from excise duties.
• Excise duty on part of footwear was also reduced from 16 per cent to 8 per cent;
Tax incentives to housing sector and emphasis on road connectivity are providing a boost to the construction and tourism activities.
This information was given by Shri Pawan Kumar Bansal, Minister of State for Finance in reply to a question raised by Smt. Supriya Sule in Rajya Sabha.
Press Information Bureau Government of India
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