The textiles industry is eagerly awaiting Union Budget 2015 as it is likely to unveil several new schemes and benefits for the industry. Introduction of GST, extension of TUFS, reduction of interest rates, taxation benefits, and investments in innovation and infrastructure are few of the many demands from the industry for the ensuing budget.
Expectations from the budget are high in industry circles. From laying emphasis on skill development and promoting cultivation of cotton and silk to introduction of labour reforms, from success-based incentive schemes and mechanism of fund rotation to promoting Indian textiles globally, several suggestions came forth from industry professionals.
Reduction of interest rates will benefit the textiles sector far more than the little savings that can be accrued otherwise through the Budget, which mostly benefits large corporate houses. It is more important to assist MSMEs to make profits by reducing interest rates.
However, opinions differ among experts over priority areas. But a common point that crops up even among these differing opinions is investment in technology and innovation, like an extension in the Technology Upgradation Fund Scheme (TUFS).
“TUFS should be extended in the coming budget, and it should be categorised as per small/medium/heavy textile industries,” NN Mahapatra, vice president (Business Development) of Colorant and vice chairman of Textile Association (India) said. He advocates a similar technology upgrading fund scheme across the dyes and dye intermediates industry as well, besides a special quota in the Special Economic Zones (SEZs).