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


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

Recommended by Apparel Resources

GST rates for textile industry deferred till 3 June

Goods and Services Tax (GST) Council – on its concluding day of meeting – has not decided the tax regime for the textiles...

Indian Government may increase MSP for cotton

India’s Union Agriculture Ministry has reportedly put forward a proposal to increase the Minimum Support Price (MSP) of cotton by Rs. 160 per...

Indian Texpreneurs Federation seeks uniform tax rates under GST

Since Goods and Services Tax (GST) has paved way for rolling out the new tax regime from July this year, Tamil Nadu-based ITF...

Maharashtra (India) to revamp khadi industry

Maharashtra State Khadi and Village Industries (MSKVI) Board has framed the policy with an aim to increase employment for women and to improve...

Urja 2017: ATDC decides next course of action

Urja 2017-Regional Managers’ Meet of India’s Apparel Training and Design Centre (ATDC) – largest quality vocational training provider in the garment industry of the country, has not only sets its...

Telangana (India) Govt. considering key points for new textile policy

Government of Indian state of Telangana has initiated the process to formulate textile and apparel policy to facilitate loans for weavers. The Government...

Madhya Pradesh (India) puts Skill Development at top of its agenda

An MoU has been signed between Apparel Training and Design Centre (ATDC) and Madhya Pradesh State Skill Development Mission (MPSSDM) to train 10,000 youth every year. Chief Minister of the...

India imposes anti-dumping duty on elastomeric filament yarn imports from 4 countries

Ever since the Finance Ministry of India has imposed definitive anti-dumping duty on elastomeric filament yarn imports from Vietnam, China, South Korea and...

NCTO applauds Donald Trump’s ‘Buy American’ Executive Order

US’ National Council of Textile Organizations (NCTO) has applauded President Trump’s Executive Order directing the Federal Government to maximize Buy American opportunities and to...

Ludhiana’s (India) textile industry draws out 10 demands

Newly formed State Government in Punjab (India) has decided to prepare a new textile policy with special focus on aligning it with Central...