The textile industry here has welcomed the Union Budget proposals saying that it is growth oriented.
According to the Cotton Textiles Export Promotion Council (Texprocil), the budget has emphasised on the development of inland waterways for cargo movement. It will bring down the cost of transport, especially for bulk products such as raw cotton.
The Non-Banking Finance Companies had been assured of support which was a right step, said K.V. Srinivasan, chairman of the Council. Exporters accessed alternative sources of finance at a lower cost, he pointed out.
The Confederation of Indian Textile Industry has said that increase in allocation for development of handloom, handicraft, wool, silk, jute and power loom sectors and additional funds for skilling will benefit the industry.
P. Nataraj, chairman of Southern India Mills’ Association, has said the announcement of “One Nation One Grid” power sector tariff and structural reforms will be a boon to the textile industry, which is power intensive. Mr. Nataraj has also said that the initiatives taken on Ease of Doing Business and investments planned in infrastructure are welcome measures. The increase in the annual turnover threshold limit from ₹250 crore to ₹400 crore for Corporate Tax of 25 % will benefit several textile mills.
According to the Indian Texpreneurs Federation convenor Prabhu Dhamodharan, the percentage of women workforce in the textile industry is less compared to the number in Vietnam or China.
The budget has given priority to women empowerment.
“Our industry can be part of the mission and contribute towards women development. We are keen to work with the government on this mission,” he said.
The Apparel Export Promotion Council vice-chairman A. Sakthivel has pointed out that the budget focuses on developing the Indian economy to a $ 3 trillion economy this year. It gives importance to infrastructure development and encourages Foreign Direct Investment. However, some of the demands of the textile industry have not been met.
Tiruppur Exporters’ Association president Raja Shanmugham has said it is a generic budget with no specific announcement for the textile sector.
The pending amount for ROSL (Rebate of State Levies) scheme for Tiruppur alone is likely to be about ₹300 crore. There is no allocation for it in the budget. Though the proposals are not damaging, there are no incentives too. Further, the extension of 25 % Corporate Tax for companies that have up to ₹400 crore annual turnover is not available for proprietor firms.
Published On : 06-07-2019
Source : The Hindu
