The textile industry has welcomed the decision of the government to bring shuttleless looms under nil Basic Customs Duty.
Ravi Sam, chairman of Southern India Mills’ Association, said in a press release that weaving was the weakest link in the textile value chain and was largely in the unorganised sector. Just about 10 % of the looms in the country were shuttleless looms. This resulted in lower value addition and high cost of production. Though Export Promotion Capital Goods (EPCG) scheme was in existence, it did not benefit the weavers much who faced difficulties in fulfiling the export obligation within the stipulated time.
Bringing shuttleless looms under zero duty would help the weaving sector modernise.
The Union Budget for 2023-24 increased Basic Customs Duty on all textile machinery, spares, and accessories from 5 % to 7.5 % from April 1 though the industry had sought retention of the duty at the existing levels. Except for the spinning machinery, spares and accessories, the other machinery were mostly imported. Now, the government had reversed the duties to 5 %. In the absence of Technology Upgradation Fund Scheme that expired on March 31 last year, the decision of the government would bring in investments and improve the competitiveness of the weaving, knitting, garmenting, and technical textile segments, he said.
