Tiruppur gives thumbs up to Union Budget

Mr. Raja M. Shanmugham, President of Tiruppur Exporters Association, welcomed the Union Budget aimed to steer economy for next 25 years through PM Gati Shakti Seven engines of growth, Roads, Railways, Airports, Ports, Mass Transport, Waterways and Logistics Infrastructure for Economic Transformation, Seamless Multimodal Connectivity and Logistics Synergy and said the development of infrastructure will reduce the cost and beneficial to exporters.

While welcoming the Guarantee cover under ECLGS to be expanded by Rs. 50,000 Crore to total cover of Rs. 5 Lakh Crore Credit Line till March 2023, Mr. Raja M. Shanmugham said this is the need of the hour to MSMEs like Tirupur Cluster and thanked the Hon’ble Minister for considering the requisition made by Association and also for revamping CGTMSE and beneficial to MSEs. He welcomed the exemption provided on items such as embellishment, trimming, fasteners, buttons, zipper, lining material and packaging boxes, which will be beneficial to knitwear exporters.

While appreciating the review of Customs exemptions and Tariff simplification, Mr. Raja M. Shanmugham said combination of specific and ad-valorem rate is being replaced by ad-valorem rates only and the rate for the items placed under tariff items of 6101, 6102 or 6103 (import of Mens or Boys / Womens or Girls Overcoats, Cloaks, Wind-Cheaters, Wind-Jackets and Women Jacket, Ensamples, etc.,) has been increased from 10% to 20% and this will protect the domestic garment business.

Mr. Raja M. Shanmugham said for Amended Technology Fund Scheme (ATUFs), the allocated amount in the Current Union Budget is Rs. 650 Crore as like last year and feels that the increased allocation is needed to clear the pending claims and he also pointed out that as the new scheme Textiles Technology Development Scheme is replacing ATUFs with an Capital Subsidy of 25%, against 15% in ATUFs, the requirement of amount is more.

He lauded for the announcement on popularization of One Station One Product concept and said in due course of time, the transportation of domestic garments from Tirupur will increase through Rail transportation to reach the various destinations.