The Government of India has reduced the Central Excise Duty by 2 per cent on textile machinery besides increasing the allocation under the Technology Upgradation Fund Scheme (TUFS) to boost modernisation of the textile industry. The outlay for TUFS has been increased to Rs 24 billion for 2014-15 from Rs 19.56 billion in the ongoing fiscal year.
"To stimulate growth in the capital goods and consumer non-durables, I propose to reduce the excise duty from 12 percent to 10 percent on all goods falling under chapter 84 and chapter 85 of the Schedule to the Central Excise Tariff Act for the period up to 30 June 2014," Finance Minister P Chidambaram said in his Interim Budget 2014-2015 speech in Parliament. However, the minister added that the rates can be reviewed at the time of the regular budget, which would be presented by the new government that takes office after the scheduled general elections later this year.