Budget 2018 to boost textile exports with Rs 7,148 crore special package
Chairman of The Cotton Textiles Export Promotion Council (Texprocil) said the Budget is pragmatic, growth-oriented and all inclusive.india Updated: Feb 01, 2018 20:24 IST
Textile players on Thursday lauded the Budget proposals of increasing financial outlay under the comprehensive textile sector package for apparel and made-ups from Rs 6,000 crore to Rs 7,148 crore, which will help promote production and exports.
Welcoming the Budget, Ujwal Lahoti, chairman of The Cotton Textiles Export Promotion Council (Texprocil) said, “the Budget is pragmatic, growth-oriented and all inclusive.”
“The government had approved a comprehensive textile sector package of Rs 6,000 crore to boost the apparel and made-up segments The Budget has provided an outlay of Rs 7,148 crore for the textile sector in 2018-19. I hope that the increased funds allocated for the textile sector will cover fabrics also under the rebate on state levies (ROSL) scheme,” Lahoti said.
The government will contribute 12% of the wages of the new employees in the EPF for all the sectors for next three years, which could boost hiring in the apparel sector. Also, the facility of fixed-term employment will be extended to all sectors.
The Budget has increased the funds allocation under the TUF scheme from Rs 2,013 crore in 2017-18 to Rs 2,300 for 2018-19. This is a positive step and will help in clearing some of the committed liabilities under the TUF scheme, the chairman said.
The reduced income tax rate of 25% allowed to companies who have reported turnover up to Rs 250 crore in the financial year 2016-17 will greatly benefit the micro, small and medium enterprises , Lahoti added.
The Clothing Manufacturers Association of India (CMAI) president Rahul Mehta said that the general focus on rural economy, including significant fund allocations, will help in pushing up demand for apparel in the domestic market.
Mehta stated the enhanced economic growth envisaged in the Budget will also help in improving demand for apparel, which is one of the primary needs of the masses.
Mehta added that the positive impact of the Budget on the apparel industry will also be reflected in job creation, since this is the most labour intensive industry in the country.
First Published: Feb 01, 2018 20:20 IST