Indian textile and apparel manufacturers are expecting boost for the sector as Union Budget 2013-14 has opened new opportunities for investments in the domestic as well as international market with reduced excise duty on branded garments, extended Technology Upgradation Fund Scheme (TUFS), assured investments and connectivity in rural areas.
Speaking to fibre2fashion, CEO of Tommy Hilfiger India, Mr. Shailesh Chaturvedi said, “The proposals in the Union Budget presented by the Finance Minister, once implemented, will create an environment for new investments and growth of clothing industry.”
“Restoration of zero excise duty on labeled apparels will enable new investors to enter into the garment sector,” he adds.
The Budget proposals would attract investment not only in the apparel sector, but also in the textile sector. Mr. Paritosh Agarwal, managing director of Suryalakshmi Cotton Mills Ltd, says, “Continuation of TUFS is a great encouragement to the textile industry and this will invite further investments in the textile sector.”
He concurs with Mr. Chaturvedi on the benefit of excise duty removal. He opines, “Removal of excise duty on garments is a major boost to the textile industry as a whole, since it will help in increasing the demand for clothing and fabric.”
Mr. Mukesh Bansal, CEO and co-founder of Myntra.com, says, “The progressive move taken by the Finance Ministry to plug the current account deficit and focus on foreign investments as a viable measure is a welcome step.”
“Assured investments in infrastructure and connectivity of rural areas will provide scope for the e-commerce sector, including the garment sector, to expand its services to all corners of the country,” he mentions.
According to Ms. Pushpa Bector, senior vice-president of Leasing and Mall Head-DLF Mall, the retail business will flourish due to foreign direct investment (FDI) and zero excise duty on branded apparels.
“The budget was satisfying for the textile industry with the restoration of ‘zero excise duty route’ for cotton and spun yarn as well as readymade garments,” says Mr. RP Soni, chairman of Sangam (India) Group.
He avers, “The extension of TUFS into the 12th Five Year Plan would further strengthen the textile sector."
Mr. Kundan Jain, president of South India Garment Association, too sees the rolling back of the excise duty on garments as being helpful to the domestic clothing industry.
