Budget Expectations of Textile Industry

For synthetics industry:

• Reduction in excise duty on man-made staple fibres of Chapter 55 and filament yarns of Chapter 54.
• Interest rates to be capped at 7% for exporters.
• Expansion of interest subvention scheme to the entire MMF textiles sector.
• Best FTA treatment to SEZ units.
• Special Additional Duty (SAD) on MMF. 4% SAD on all man-made fibres should be abolished.
• Central excise registration for merchant exporters.
• Reduction in the rate of service tax. Service tax rate has been increased to 12.36%, which is too high.
• To reduce power costs because, in Western India, power costs have gone up substantially.
• The infrastructure at ports has to be improved to take care of growing export volume. Logistic part has to be addressed.
• The Marketing Assistance available under the MDA/MAI scheme to the Councils to be enhanced further.
• Integrated textile policy is the need of the hour.
• Liquidate CENVAT balances, since the MMF textile processing industry has accumulated CENVAT balances, because of an inverted duty structure.
• Other than timely disbursement of Technology Upgradation Fund Scheme (TUFs) payment, promotional schemes like focus markets to reach out to untapped overseas countries are a MUST
• Streamline scattered textile production chain.
• Reduce basic custom duty on PTA, MEG, PSF, POY and also textile machinery and SAD on all of these to be lowered from 4% to 0%.

For cotton industry:

• Integrated textile policy is the need of the hour.
• The government should review the draft recommendations of the Ajay Shankar committee.
• Create a level-playing field for all the sectors in the global environment.
• The new policy should be in line with the present era of development, should not be sectoral, but quite comprehensive.
• Issues related to TUFS will have to be addressed immediately.
• The government should also launch the much-awaited National Fibre Policy.
• Restrict cotton export and allow duty-free import of cotton.
• Do not allow cotton yarn export, except counts of 60s & above.
• Stop duty drawback facility on cotton yarn export.

For garments industry:

• Continue excise duty exemption on branded garments.
• The government should consider the definition of a ?Brand? under excise laws.
• Excise will be levied on all garments and not only on the high-end brands.