TEA Welcomes Union Budget 2016-17

TEA Welcomes Union Budget 2016-17

Tirupur Exporters’ Association (TEA) president, A. Sakthivel has welcomed the Union Budget presented by the finance minister, Arun Jaitley in Parliament yesterday and said it has addressed the requisitions made by the Association.

While complimenting the Budget as positive one, Sakthivel said the focus of infrastructure and initiatives for “Ease of Doing Business” will go a long way in improving the economy as well as reducing the transaction cost.  He also expressed happiness on more allocation for skill development fund.

He, however, expressed concern on the proposal of excise duty on branded readymade garments and made up articles of textiles with the retail sale price of more than Rs.1000.  This will adversely affect the industry and also difficult to administer.

Sakthivel complimented finance minister for allocating Rs.3350 crore for textile industry which includes Rs.1400 crore for amended TUFS and Rs.300 crore for development of mega cluster and Rs.200 crore for rural development.

As the upgradation of skill is major requirement to the industry, Sakthivel welcomed the proposal for allocating Rs.1700 crore for 1500 multi skill development centres which is the need of hour to the manufacturing sector.

He was also happy to note that the Association’s long requisition was addressed in this budget and welcomed the reduction of basic customs duty on specified fibers and yarn from 5 per cent to 2.5 per cent.