IDBI Capital Market Services Limited's Maitali R Shah speaks to Fibre2fashion on Budget 2007-08:
Budget 2007-08 is positive for textile industry.
Implications:
Customs duty cut in manmade fibre is expected to be mild positive for the sector. Duty cut in raw material like PTA & MEG will benefit the man made fibre companies. But duty cut on PFY/PSF will neutralize the impact for spinners.
On a whole, customs duty cut is expected to be neutral for company like Indo Rama Synthetic and positive for companies like Sangam India, Rajasthan Spinning.
The extension of TUFS shall continue the process of modernization and technological up gradation of the textile industry.
It will aid in achieving investment target of $15 billion required to increase textile exports to $50 billion by 2010. Positive for companies in manufacturing of textile machinery like Lakshmi Machine Works.
Fibre2fashion News Desk - India
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