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The highly labour intensive textile
industry which could shoulder major duty for inclusive growth of the country
has become overlooked within the Union Budget 2008-09, reacted Dr K V
Srnivasan, Chairman, SIMA. In the Blog post issued, he explained that as you
move the industry was hoping relief for a time measures as a way to overcome
the economic chaos faced through the industry as a direct consequence of sudden
appreciation of Rupee against US Dollar (around 15%), high bank interests (5%),
high cotton prices (20%), etc, no relief measures are already announced inside
the Budget. Dr Srinivasan mentioned that this industry was demanding for cut in
import duty on cotton from 10% to 5%, exemption of cotton from special CVD,
withdrawal of just one% drawback extended for cotton export, refund of local
levies, reduction of custom and excise duty on manmade staple from 7.5% to
five%, withdrawal of custom on furnace oil imports for captive consumption by
textile industry and cut of mandatory excise duty, withdrawal of customs duty
on textile machinery except spindles, etc, so as to contend with the countries
like China, Pakistan, Bangladesh, Sri Lanka and Taiwan, that have edge against
your competitors over India. He further stated that need for a according of 1
year moratorium period for repayment of loans and interest to counteract many
textile units becoming NPA, has also not been considered inside budget
announcement. He remarked that government entities has alsofailed to pay the
back off appreciation of Rupee against US Dollar.
The earmarking of Rs.450 crores for Scheme
for Integrated Textile Park (SITP) and Rs.1090 crores for Technology
Upgradation Fund Scheme (TUF) only agreed to be a routine announcement, as the
TUF and SITP had been extended for the complete 11th Five Year Plan period,
remarked Dr K V Srinivasan. He further noticed that the allocation of fund for
TUF inside budget, was sufficient to meet exactly the backlog and wouldn't
normally meet the future demand. He regretted the efforts put in from the
industry in addition to the government over the past year or two for making
that is a globally competitive, reach the targeted growth rate investments and
creation of new employment over 15 million people, have gone in vein as well as
the budget has totally ignored the textile industry. To the contrary, your
ability to buy has withdrawn shuttleless looms through the exemption directory
Central Excise / CVD and has levied 8% duty. Dr Srinivasan has mentioned that
would totally discourage any investment within the weaving sector, that is a
weakest link from the textile value chain and would seriously affect the
introduction of powerloom sector and various textile parks near your vicinity.
SIMA chairman further asserted the Union Budget has not considered the
recommendations created by different Work Teams of Texsummit 2007, a national
conclave organized by Ministry of Textiles, wherein the Honle Pm had
participated and promised to consider necessary steps to sustain the
competitiveness with the Indian textile industry inside the globalized arena.
However, SIMA chief welcomed the announcement of textile clusters for growth of
powerlooms in Bhiwandi and Erode, that is really the only welcoming feature
from the Union Afford the textile industry. y.
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