The textile engineering industry has successfully raised its production from Rs 2,212 crore during 2005-2006 to Rs 2,799 crore in 2006-2007, a 24% hike in production. The capacity utilisation has also improved to over 72% during the year. However, the slowdown in the textile industry during 2007-08 is expected to hit the machinery industry considerably and if the situation persists there could be a negative growth during 2008-09. Of the various segments in the textile machinery industry, the spinning machinery makers have stepped up their production to shorten the delivery period in the last year. But with the lacklustre period in the textile industry, they fear a drastic fall in the demand in the coming months. Imports of textile machinery including second hand machines have shown an uptrend. The import data published by the Directorate General of Commercial Intelligence & Statistics, Kolkata for 2006-07 indicates that the total imports were to the extent of Rs 9,434 crore as against Rs 7,100 crore during 2005-06. The indigenous textile machinery industry feels that there is an urgent need to initiate serious measures both by the Government and the industry to tide over the present difficulties and develop, manufacture and supply latest technology machines to the textile industry. The TEl is capable of meeting the needs of the textile industry efficiently provided there is a sustained demand. It lists the following impediments as the stumbling-block to its growth: High rate of excise duty on textile machinery, parts & accessories at 16%; Anomalies in duty €higher duty on raw matelials, parts/components and accessories than that of complete machinery; Non-availability of direct exemption in excise duty on supplies of machines made to EPCG licence holders. The refund claims are delayed and huge working capital is blocked; Non-availability of uniform rate of customs duty on all items of textile machinery, and; Nonnavailability of lower customs duty on raw materials, parts, components & accessories for the manufacture of textile machinery. 

In every forum, the Government and the industry trade charges. As in the past, the tradition continues with the action missing!.