Union Budget 2017-18, presented by Financial Minister Arun Jaitely, has a specific focus on MSMEs which the textile and apparel industry of the country has welcomed wholeheartedly.
Nandan Denim Ltd., India’s second largest and the world’s fifth largest denim fabric company, has found the Budget a growth-oriented and beneficial one in long term. Deepak Chiripal, CEO of the company commented, “Medium and Small Enterprises (MSMEs) are the backbone of the industry and generate the maximum employment. Tax cut for the MSMEs with an annual turnover of Rs. 50 crore is a welcome gesture and will drive the growth engine as most of India’s companies will get this benefit of 5 per cent tax reduction which will be a relief for them.”
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According to the CEO, textile industry is one of the largest employers in India and contributes about 14 per cent to industrial production, 4 per cent to the GDP and gives direct employment to around 45 million people. Labour reforms was a much sought demand and the Budget announcement will definitely help foster a conducive labour environment leading to harmonious labour relations which will further lead to higher productivity. After short-term sluggish demand due to demonetization, this will surely help boost the textile and apparel market, he opined.