In the previous year’s budget there was an applicable duty on cotton yarn. However, the Govt made it a point in this budget, to announce that duty on cotton yarn was made nil, says Kavita Gupta, Textile Commissioner, GoI
Aadhira Anandh | The Dollar Business
The Union Budget of 2016-17 has come as a relief for the textile industry. The basic customs duty on fibers was reduced from 5% to 2.5%. Similarly, there is no mandatory duty imposed on cotton yarn.
In the previous year’s budget there was an applicable duty on cotton yarn. However, the Govt made it a point in this budget, to announce that duty on cotton yarn was made nil.
This year’s budget has recognised the importance of infrastructure and has increased funds for infrastructural developments and MNREGA. These measures will lead to an overall development of the industry as a whole. They will also help in the realisation of Make in India initiative of the government which would boost rural demand and consumption.
However reactions from the industry heavyweight such as R.K.Dalmia, Chairman, Texprocil revealed, that “the 2% duty on textiles on the branded ready-made garments was not in existence in the previous budget. The government will have to look into this issue as there would be a compliance issue. This duty was present during the tenure of Pranab Mukherjee as Finance Minister, however it did not yield results due to the same compliance issues,” he added.
Kavita Gupta, the textile commissioner had a very positive response to the budget. She said, “the budget is very forward looking. We can say the budget to be transformative and a budget of change. The increase of funds in the MNREGA scheme has the capability to increase the industry on a larger scale and also improve the purchasing power.”
The overall picture that the budget drew in certain key areas was it proposed changes in the customs and excise duty rates, simplified the duty structure which would play an important role in incentivising the domestic value addition to the Make in India campaign.
Kavita Gupta, Textile Commissioner, GoI
March 01, 2016 | 05:40pm IST.