The Proposals Are a "Mixed Bag" for The Textiles Industry

The proposals in the Central Budget 2014-15 presented to the Parliament by the Hon’ble Finance Minister Shri Arun Jaitley are a “mixed bag” for the textiles industry according to Confederation of Indian Textile Industry (CITI).

Reacting to the budget proposals, Shri Prem Malik, Chairman, CITI in a statement issued here thanked the Finance Minister for continuing optional excise duty regime for textiles and clothing and for announcing several textile clusters in various parts of the country.  He added that the exemption of service tax on handling and transportation of cotton would be helpful both to the farmers and the textiles industry.

Shri Prem Malik stated that extending investment allowance of 15% on investments of more than Rs.25 crores in plant and machinery and the proposal to develop an entrepreneur friendly bankruptcy framework for SMEs would be helpful to small units in the textiles industry. He requested that the bankruptcy framework may also be extended to larger units.

Shri Prem Malik requested the Finance Minster to withdraw the excise duty of 6% on PSF and PFY manufactured from plastic waste and scraps. He pointed out that such regenerated fibres are extensively used in the textiles industry and as a basic raw material the excise exemption on it has been adding to the competitiveness of the textiles industry.