The Textile associations in India have welcomed the raised allocation for the sector in budget 2018 announce by finance minister, Arun Jaitley yesterday saying it will help firms in many ways, including clearing pending rebate of state levies (RoSL) dues. The drop in corporate tax rate for units with an annual turnover of up to Rs 250 crore might benefit most textile units in India.
They also appreciated the increased allocation for infrastructure development and the focus on agriculture, and saw a lot of incentives for micro, small and medium enterprises (MSMEs).
SIMA chairman, P Nataraj welcoming the scheme in the budget for MSMEs to address issues relating to non-performing asset (NPA) norms and stressed assets, a long pending demand of the industry, said that the reduction of corporate tax rate will benefit more than 80 per cent of the textile units and help them plough back the amount for creating more jobs and value addition.
However, both Nataraj and TEA president Raja M Shanmugham feels the allocation of Rs 2,164 crore for RoSL compared Rs 1,855 crore last year for the export of garments and made-ups is still inadequate as there is a huge backlog for 2017. Shanmugham also said that the actual requirement of RoSL scheme for apparel exporters alone till March 31 this year is in the range of Rs. 5,000 crore.
TEXPROCIL chairman Ujwal Lahoti hoped the increased funds will cover fabrics as well under the RoSL scheme.
Not much has been said in the budget about concrete correctional measures to boost India’s export competitiveness in textiles or policies favouring a revival of textile special economic zones, said Bhavin Parikh, CEO of Ahmedabad-based Globe Textiles (India) Ltd.
CMAI president Rahul Mehta said infrastructural bottlenecks have been hindering apparel manufacturing, which involves significant domestic transportation of raw materials and finished goods. The 20 per cent higher allocation for infrastructure development shows the government’s thrust on renewing spurt in economic activity, according to GHCL Ltd managing director RS Jalan.
Though it was expected of the budget to revive the retail sector, which is at an all-time low, there is no chance of its revival in the near future, Anurag Singhla, vice president of South India Garment Association (SIGA) said.
Many industry associations said apparel sector workers will be among the primary beneficiaries of the reduction in women’s’ Employees Provident Fund (EPF) to 8 per cent for the first three years, provision as the sector extensively employs women.
– Apparel and Textile News, Apparel Talk, Indian Apparel
