Interest sops up for textiles modernisation

The allocations for the current fiscal have been raised on top of a huge jump to Rs 2,632 crore in the revised estimates of 2008-09, according to the Budget papers.

However, the textile industry, facing tough times under the impact of global slowdown, is not pleased with the Budget announcements of Finance Minister Pranab Mukherjee.
The industry, which employs 35 million people, said it expected tax holidays.

“The Budget is quite disappointing. We expected more. It is good that Fringe Benefit Tax has been removed and also the interest subvention scheme has been extended but our demand to increase the rate to four per cent has not been met,” Apparel Export Promotion Council Chairman Rakesh Vaid said.

Confederation of Indian Textile Industry said the budget proposals do not have the potential to bring the industry back to growth. “Restoration of 8 per cent duty on man-made fibre is disappointing and this will make fibre uncompetitive,” CITI Chairman R K Dalmia said. President of the Federation of Indian Exporters’ Organisation and Tirupur Exporters’ Association, A Sakthivel, said, “We welcome the increase in allocation for textiles from Rs 2,500 crore in 2008-09 to Rs 4,500 crore and increase in allocation under TUFS, but interest subvention should have been extended till 2012.”