Textile industry welcomes Union Budget 2017-18 | Policy News India
Home » News » Policy News » Textile Industry Welcomes Union Budget 2017 18

Textile industry welcomes Union Budget 2017-18

Share: 
      Newsletter

READ MORE ON BudgetIndian Textile IndustryPolicy News India

Union Budget 2017

Image Courtesy: 9amstories.com

Union Finance Minister of India, Arun Jaitely, has presented the much-awaited Union Budget today in the Parliament. Textile and apparel industry was hoping for some good announcements as this sector is claimed to be the worst-hit ones of the economy due to demonetization and the Budget has not disappointed them.

MSMEs having turn over below Rs. 50 Crore are likely to get benefits with cut in Corporate Income Tax by 5%. Previously, the tax rate was 30% which, in the recent budget, has been reduced to 25%. Textile associations in India have welcomed this move as they believe this decision is an encouragement for start-up’s to make investment in textile and apparel sector. The other benefits extended such as additional allocation to the banks for NPA accounts, cashless transaction, labour reform, relaxation of FDI norms by abolishing Foreign Investment Promotion Board (FIPB) would also benefit the textile and apparel industry.

Also ReadIndian Textiles Minister inaugurates apparel making centre in Meghalaya

Raja M Shanmugham, President of Tirupur Exporters’ Association (TEA), lauded the enhancement of allocation of fund to Mudra Bank from Rs. 1,36,000 crore to Rs. 2,44,000 crore which will encourage the new entrepreneurs in the region to investments in sectors such as knitwear.

Expressing his satisfaction over the announcements made, S C Ralhan, President of Federation of Indian Export Organizations (FIEO), said, “The investment of close to Rs. 4 lakh crore in the infrastructure encompassing road, railways, aviation would not only improve competitiveness of manufacturing and exports sector but would reduce the logistics cost of exports as well.”

Adding to that, M. Senthilkumar, Chairman of Southern India Mills’ Association (SIMA), welcomed the Union Budget…, “The objective of Doubling farmers’ income, Housing for one crore rural Indians, Skilling of youth by establishing 100 India International Skill Centres, Development of Infrastructure to provide end-to-end solution by integrating road, rail and ship would greatly benefit the textile industry spread across the nation.”

However, Ujwal Lahoti, Chairman of TEXPROCIL, has some mixed opinions on this Budget. He said, “Overall the Budget is positive, wide ranging and inclusive.” He, however, appealed the Government to restore some of the incentives relating to interest subvention for merchant exporters and cotton yarn and MEIS benefit for cotton yarns.

 

Have some news? Let us know on news@apparelresources.com

Comments are closed.

Recommended by Apparel Resources

India’s EPCH takes measures to ensure smooth GST roll-out

Goods and Services Tax (GST) will be effective from 1st July, 2017 and become one of the biggest taxation reforms in India… In a bid to ensure hassle-free execution of the...

Bangladesh will continue to get duty-free access to UK post Brexit

Even as readymade garment exporters in Bangladesh have been speculating on the fate of duty-free benefits (that it currently enjoys in United Kingdom)...

India imposes anti-dumping duty on sewing machine needles from China

The Union Finance Ministry of India has imposed definitive anti-dumping duty for a period of five years on sewing machine needle import from...

Textile industry clueless on draft of UP Textile Policy ’17

Draft of Textile, Handicrafts and Sericulture Policy 2017 has recently been approved by the Yogi Adityanath-led State Government in Uttar Pradesh, India. The draft is however not available in public...

Indian knitwear industry likely to get ‘special package’ soon

Indian knitwear industry might get to hear good news in around two months’ time as the Government is likely to announce a package...

India ratifies two ILO conventions on child labour

The Union Cabinet chaired by Prime Minister Narendra Modi gave formal consent to two core conventions of International Labour Organisation (ILO) on child...

Gorakhpur (India) to get Silk Research Centre

Gorakhpur city in Indian state of Uttar Pradesh is expected to get maiden Silk Research Centre. If becomes reality, it will be helpful...

UP (India) Govt. approves draft on textile policy

UP Textile, Handicrafts and Sericulture Policy 2017 has been approved by the Yogi Adityanath-led State Government in Uttar Pradesh, India. He also gave...

Telangana (India) Govt. allocates Rs. 1,200 crore for textile industry

Rs. 1,200 crore has been allocated by the Telangana (India) Government to the textile sector for FY 2017-18. Of the total budget, Rs....

TEA urges GST Council to cut tax rate on apparel job work

After the reduction of GST rate for textile job work from 18 per cent to 5 per cent, Tirupur Exporters' Association (TEA) thanked...