Confederation of Indian Textiles Industry (CITI) has welcomed the Central Budget 2013-14 presented by the Finance Minister, Shri P. Chidambaram in Parliament as a positive package for accelerating the recovery of the textiles industry. In a statement issued here, Shri S.V. Arumugam, Chairman – CITI, stated that there have been signs of recovery in the industry for the past few months and some of the positive features of the Budget would help this process further.
Restoring the optional excise regime for branded garments and made-ups is the most positive factor in this Budget. Shri Arumugam stated that this has been a long standing demand of the industry. He also welcomed the announcement of continuation of Technology Upgradation Fund Scheme (TUFS) during the 12th Five Year Plan and allocating Rs.2400 crores for 2013-14.
Shri Arumugam welcomed the reduction of customs duty from 7.5% to 5% for textile machinery which would also help to augment investments in the sector. He further added that allocation of Rs.50 crores for Apparel Parks and launching an Integrated Processing Development Scheme (IPDS) were other welcome features of the Budget. Chairman, CITI also thanked the Finance Minister for reducing interest burden for working capital and term loans to a concessional rate of 6 per cent for the handloom sector.
Referring to the requests that the industry had made to the government, Shri S.V. Arumugam stated that reduction of the duty rates for man-made fibres and assistance to the industry to handle the precarious power situation are two major areas where the Budget has not addressed the issues of the textiles industry. However, Shri Arumugam thanked the Finance Minister for the several positive measures incorporated in the Budget.
