Budget 2021

Textile industry disappointed

The textile industry has expressed disappointment over the budget announcements as the major demands have not been met.

Confederation of Indian Textile Industry Chairman Prem Malik said the allocation for the Technology Upgradation Fund Scheme had been reduced to Rs.1,520 crore for 2015-16 from Rs.1,864 crore allocated for 2014-15. Payments under the scheme were pending for the last three quarters and the provision had to be doubled to disburse the pending amount. Reduction in allocation for the scheme would not encourage investment in the sector. The hike in service tax would have an adverse impact on the textile industry, he said.

Southern India Mills’ Association Chairman T. Rajkumar said in a press release that while the government had extended the optional Cenvat route for cotton textiles this year too, it had not considered some of the major demands of the textiles and clothing sector.

This included the need to remove import duty and reduce Central Excise on man-made fibres and allocation of adequate funds for the ongoing and pending projects under the Technology Upgradation Fund Scheme. The prices of Indian man-made fibres were 23 per cent higher compared to international price and, therefore, the growth of the sector in the country was stagnant.

The six per cent excise duty on shuttleless looms should be removed, he said.

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Printable version | Jul 27, 2021 11:01:57 AM | https://www.thehindu.com/business/budget/Textile-industry-disappointed/article14062400.ece

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