The current budget for 2015-16 is considered as growth oriented by various experts, but I think for textile Industry, it is not very promising budget. The Government´s vision of growing Indian textile and apparel industry to US$ 220 billion by 2020 needs more support and schemes from government. Unfortunately major demands of Industries have not been met in current budget.
The industry had requested for a reduction in the duty burden on man-made fibres but, the duty burden instead has hiked slightly in the current Budget. There are no additional incentives for export has been declared. To boost the export, government should give more incentives. Chinese govt/financial companies provide interest free loan to the buyer for 18-24 months who buys Chinese textile machinery. This kind of scheme gives added advantage to Indian manufacturer globally.
TUF scheme has been reduced to Rs 1,520 crore for 2015-16 from Rs 1,864 crore allocated for 2014-15 while industry had demanded to increase it to Rs 3,000 crore. A positive aspect of the Budget, as far as the textiles sector is concerned, is that the optional excise duty structure has been continued. So the shuttleless loom and warping machine will still have the excise duty of 6 per cent. The government has extended the optional Cenvat route for cotton textiles this year too.
The announcement that GST will be introduced on 1 April 2016,and reduction of corporate tax from 30 per cent to 25 per cent will definitely make manufacturing more competitive and thereby support the 'Make in India' campaign.´
- Amoli Shah, Director, Prashant Group of Companies