Bangalore, July 6 Budget 2009 has left an expectant textiles and apparel exports industry high and dry. The industry, which was anticipating several sops after the Textile Minister’s assuring words, is disappointed that no consequential announcement was made by the Finance Minister to give a thrust to the sector that is ailing under the global meltdown.
As part of the Government stimulus measures earlier in the year, pure cotton textiles became fully exempted from excise duty, thereby, preventing manufacturers from availing of export rebate.
The Budget has now sought to resolve that by restoring excise duty on cotton textiles to four per cent; central excise on man-made fibre has been restored to eight per cent.
“But this is just a technical formality that will not have any major impact on exporters,” said Mr Rajendra Hinduja, Managing Director, Gokaldas Exports.
He also added that it was disappointing that no increase in duty drawback rates was announced.
The extension of two per cent interest subvention by another six months till March 2010 will also not benefit us greatly, said Mr Hinduja. The apparel exporting community, which is sagging by 10-11 per cent a month, was looking for an increase from two per cent to four per cent.
Mr Nitin Mandhana, Managing Director, Indus Fila, said that maintaining status quo on interest subvention rate is of no consequence to the industry. “The Budget is non-eventful as far as the textile industry is concerned,” he said.
Mr V. Thiagaraj, Executive Director, Sona Valliappa Textiles, was disappointed that no mention was made on the technology upgradation fund scheme. Around Rs 2,500 crore of TUFS refund is pending and has not been released, he said.
Source : Business Line