With the Union Budget nearing, the industry associations here have submitted their demands and expectations to the Government.
The Southern India Mills’ Association has sought efforts to improve competitiveness of the industry, both, in the domestic and international markets. It should focus on the entire textile value chain so that imports are controlled, exports pick up, and the domestic market revives.
Import duty
The man-made fibre sector should be competitive in the international market. For this the Government should look at several measures. It should remove the 5 % import duty on man-made fibres. The MEIS (Merchandise Exports from India Scheme) is extended till the end of March and the exporters should be paid the benefits immediately.
The Government should also form a committee soon to finalise details of the Rebate of State and Central Taxes and Levies schemes. The Government should release immediately all the benefits due under the Government schemes, the Association said.
According to the Tiruppur Exporters’ Association, clusters such as Tiruppur face acute shortage of skilled labour. Workers need to be provided accommodation facilities to retain them.
Some of the units construct houses for the workers. While welcoming the housing facilities being executed under Pradhan Mantri Awas Yojana (PMAY) Scheme, the Association said that where the units contribute the amount voluntarily for construction of houses to its workforce, the contribution has to be treated as allowable business expenditure similar to Section 37 of the Income tax Act, 1961, preferably providing weighted deduction or at least deduction. It also sought formation of Knitwear Board that would function out of Tiruppur. The Board can handhold the industries in their growth journey.
Stability of cotton prices
The South India Hosiery Manufacturers’ Association, which has members catering to the domestic knitwear market, appealed to the Government to come out with a system that will stabilise cotton prices. This will ensure stability of cotton yarn prices and help the manufacturers plan the production cost. The tax for machinery made indigenously, the tax rate should be reduced to 5 % from 18 % or the rate should be brought under refundable system.
There should be mini knitwear garment manufacturing parks to generate more employment in rural areas in Tiruppur.
In the engineering sector, the Southern India Engineering Manufacturers Association has demanded preference for Micro, Small and Medium-scale Enterprises in government tenders. The conditions in the tenders deprive the MSMEs of opportunities.
Both, the Bureau of Indian Standards and Bureau of Energy Efficiency, have increased the marking fees. The MSMEs should spared from the hike as it will lead to higher production cost.
Farmers should be supported to invest in equipment and pumpsets and this will, in turn, give a boost to the domestic machinery and pumpset manufacturers, the Association said.
