The Confederation of Indian Textiles Industry (CITI) has welcomed the 2013-14 Central Budget presented by the Finance Minister, Mr. P. Chidambaram, as a positive package for accelerating the recovery of the textiles industry.
In a press release, Mr. S.V. Arumugam, CITI Chairman, stated that there have been signs of recovery in the industry for the past few months and some of the positive features of the Budget would help this process further.
He said restoring the optional excise regime for branded garments and made-ups is a most positive factor in the Budget. This has been a long-standing demand of the industry. Also welcomed is the Budget announcement of continuation of the Technology Upgradation Fund Scheme (TUFS) during the 12th Five-Year Plan and allocating Rs. 2,400 crores for it for 2013-14. Further, reduction of customs duty from 7.5 per cent to five per cent for textile machinery would help augment investments in the sector.
Allocation of Rs. 50 crores for apparel parks, launching of an Integrated Processing Development Scheme (IPDS), and the cut in interest on working capital and term loans to a concessional rate of six per cent for the handloom sector are the other attractive features of the Budget.
Referring to the earlier demands of the textile sector, Mr. Arumugam stated that reduction in duty rates for man-made fibres and assistance to the industry to handle the precarious power situation have not been addressed by the Budget.
However, he thanked the Finance Minister for the several positive measures incorporated in the Budget to ensure speedy recovery of the industry.