Coimbatore

Good days ahead: apparel cluster

Different stakeholders in the MSME (micro small and medium enterprises) dominated Tirupur apparel cluster, and farmers here see ‘Achche Din’ (good days) ahead following the proactive proposals in the Union Budget for the said sectors.

According to technocrats, the creation of Rs. 10,000 crore fund for a conducive system for venture capital in MSME segment is going to promote entrepreneurship, and emergence of start-up companies in clusters like Tirupur. “With the fund to be allocated as equity/risk capital for start-up ventures, overall business activities are going to witness an exponential increase,” said S. Dhananjayan, chartered accountant and industry consultant.

Entitlement

Apparel exporters here were enthused that the Finance Minister had decided to increase the duty free entitlement for import of trimmings and embellishments from 3 per cent to 5 per cent of the value of their exports.

“This is a big step considering that ‘good quality’ embellishments put on the apparels exported from Tirupur are primarily been imported. Enhancement of the ceiling will thus reduce the cost of production and help us remain cost competitive in the global market,” said T. R. Vijayakumar, an exporter.

The budgetary decision to give investment allowance of 15 per cent for investments of Rs. 25 crore or more in the manufacturing sector too have been welcomed by the industrialists.

Raja Shanmugam, chairman of Confederation of Indian Industry (Tirupur district council), said the industry was elated as almost all the suggestions put forward by the CII for growth of manufacturing sector had been addressed in the budget.

Warehouse

Allocation of Rs. 5,000 crore towards creation of scientific warehouses for increasing shelf life of agriculture produces and earmarking an additional Rs. 5,000 crore for creation of agriculture infrastructure were welcomed by the farmers in the district.

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Printable version | Apr 18, 2021 3:21:05 AM | https://www.thehindu.com/news/cities/Coimbatore/good-days-ahead-apparel-cluster/article6199072.ece

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