Post Budget textile sector upbeat
Updated: Mar 07, 2013 09:10:35pm
New Delhi, 5 March (KNN) The Budget proposals for 2013-14 has given a number of incentives to the Indian textile and apparel manufacturers, who of late have not been doing well in the face of increasing cost of production and rising global competition.
The textile sector which includes a large number of MSMEs will get new opportunities for growth and investment for both their domestic and international operations from the budget proposals. The Budget provides Rs 2400 crore for the technology up-gradation for the textile sector.
“MSMEs have a large share of jobs, production and exports. Too many of them do not grow because of the fear of losing the benefits associated with staying small or medium,” the Finance Minister said while presenting the budget.
"To encourage them to grow, I propose that the benefits or preferences enjoyed by them will stay with them for up to three years after they grow out of the category in which they obtained the benefit”, Chidambaram added.
In addition, Rs 50 crorehas been allotted to the Ministry of Textiles as incentive to set up apparel parks within the Scheme for Integrated Textile Parks (SITP) to house apparel manufacturing units.
The government will continue with the Technology Up-gradation Fund Scheme (TUFS) in the 12th Plan with an investment target of Rs 1.5 lakh crore, the new measures coming into effect on 1st April.
The textile sector appears to have received a good deal in the budget as successful schemes will be continued in the 12th Five Year Plan Period ending on March 31, 2017. Given that the sector has recently been facing several environment related problems, the textile ministry has decided to initiate a new scheme called the Integrated Processing Development Scheme to address those environmental concerns.
Additionally, Chidambaram has offered working capital and term loans at a concessional interest of 6 per cent to the handloom sector; and the import duty on raw silk has been increased to 15 per cent from 5 per cent, in the wake of improving the domestic silk manufacturing sector.
Chairmanof the Southern India Mills Associations’ (SIMA), S Dinakaran appreciated the budget for supporting the Indian Textile Industry. “With the continuation of successful support schemes such as TUF and SITP, India’s global share in the textile market will substantially improve,” he said in newspaper interview. He noted that funds were also allocated for technical skill up-gradation.
Paritosh Agarwal of Suryalakshmi Cotton Mills welcomed the budget that according to him was an encouragement to the textile sector. “Giving an investment allowance of 15% on investments more than Rs 100 crore in plant and machinery will boost the growth of the industry”, he said.
Specifically, incentives for the apparel sector to tackle technology weak-links and pollution issues are favourable aspects of the budget as also the optional route in the central excise duty provided to branded garments and made-ups. The support is expected to provide a level playing field for the textile value-chain and make the domestic textile industry which currently employees about 100 million people, competitive, against low wage countries such as Bangladesh.
Besides, Chidambaram announced doubling the Small Industries Development Bank of India (SIDBI) re-financing facility allocation to Rs10,000 crore, which during 2012-13was Rs 5,000 crore. (KNN)
The textile sector which includes a large number of MSMEs will get new opportunities for growth and investment for both their domestic and international operations from the budget proposals. The Budget provides Rs 2400 crore for the technology up-gradation for the textile sector.
“MSMEs have a large share of jobs, production and exports. Too many of them do not grow because of the fear of losing the benefits associated with staying small or medium,” the Finance Minister said while presenting the budget.
"To encourage them to grow, I propose that the benefits or preferences enjoyed by them will stay with them for up to three years after they grow out of the category in which they obtained the benefit”, Chidambaram added.
In addition, Rs 50 crorehas been allotted to the Ministry of Textiles as incentive to set up apparel parks within the Scheme for Integrated Textile Parks (SITP) to house apparel manufacturing units.
The government will continue with the Technology Up-gradation Fund Scheme (TUFS) in the 12th Plan with an investment target of Rs 1.5 lakh crore, the new measures coming into effect on 1st April.
The textile sector appears to have received a good deal in the budget as successful schemes will be continued in the 12th Five Year Plan Period ending on March 31, 2017. Given that the sector has recently been facing several environment related problems, the textile ministry has decided to initiate a new scheme called the Integrated Processing Development Scheme to address those environmental concerns.
Additionally, Chidambaram has offered working capital and term loans at a concessional interest of 6 per cent to the handloom sector; and the import duty on raw silk has been increased to 15 per cent from 5 per cent, in the wake of improving the domestic silk manufacturing sector.
Chairmanof the Southern India Mills Associations’ (SIMA), S Dinakaran appreciated the budget for supporting the Indian Textile Industry. “With the continuation of successful support schemes such as TUF and SITP, India’s global share in the textile market will substantially improve,” he said in newspaper interview. He noted that funds were also allocated for technical skill up-gradation.
Paritosh Agarwal of Suryalakshmi Cotton Mills welcomed the budget that according to him was an encouragement to the textile sector. “Giving an investment allowance of 15% on investments more than Rs 100 crore in plant and machinery will boost the growth of the industry”, he said.
Specifically, incentives for the apparel sector to tackle technology weak-links and pollution issues are favourable aspects of the budget as also the optional route in the central excise duty provided to branded garments and made-ups. The support is expected to provide a level playing field for the textile value-chain and make the domestic textile industry which currently employees about 100 million people, competitive, against low wage countries such as Bangladesh.
Besides, Chidambaram announced doubling the Small Industries Development Bank of India (SIDBI) re-financing facility allocation to Rs10,000 crore, which during 2012-13was Rs 5,000 crore. (KNN)
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