The Indian textile industry is extremely disappointed with this year's central budget

by:JIYALI     2021-08-08
The Indian textile industry was very disappointed with the 2008-09 central budget submitted by the Ministry of Finance to the National Assembly on February 29, 2008. In a statement, ShriP.D.Patodia, president of the Union of Indian Textile Industry (CITI), said that the growth target of the 11th Five-Year Plan mentioned by the Minister of Finance is still on paper, unless specific specifics that are beneficial to the textile and clothing industries are given. Measures, these industries have growth potential. The budget did not mention how to resolve the expanding crisis faced by highly labor-intensive industries.   ShriPatodia said that reducing tariffs and excise taxes on fiber and capital goods, establishing a tax rebate mechanism for labor-intensive product exporters, and allowing them to postpone the repayment of short-term loan principals, these measures will help the textile and apparel industry to get out of the crisis.  The budget did not mention how to solve these problems. The current problems facing the textile industry are caused by the uncontrolled appreciation of the rupee, and interest rates have been raised at the same time. This is a direct result of government policies.  Although there may be economic reasons for formulating these policies, it must be ensured that these policies will not cause major harm to labor-intensive industries, such as the textile and clothing industries, because these industries can provide employment opportunities for a large number of rural poor people and women.   The budget ignores the concerns of the textile and garment industry, which will affect a large number of enterprises in the textile chain, causing these enterprises to close or reduce production, which will cause the unemployment rate to rise sharply. The inability to repay loans and the increasing number of non-performing assets (NPAs) in India will immediately create another cause and effect relationship. ShriPatodia asked the Ministry of Finance to formulate a package of textile industry policies in the budget to solve the serious problems facing the textile industry and cushion the blow to the textile industry from the appreciation of the rupee. His proposed measures include returning all taxes to exporters and cutting fiber. And the consumption tax and tariffs on capital goods announced that the short-term loan repayment time will be extended by at least one year.   He said that CITI has already proposed these measures to the government in its pre-budget memo.   He said that with regard to the 10.9 billion rupees in the TUFS arrangement, the funds are not even enough to provide the existing TUFS loans, let alone the new TUFS projects.   In fact, the demand in 2007-08 was over 6 billion rupees, and the existing loan demand in 2008-09 still needed 11 billion rupees.   At present, TUFS loan payment has been postponed for nearly a year. The budget allocation for next year is very small, and the payment schedule in the next few months can only be delayed. ShriPatodia requested a substantial increase in the 2008-09 TUFS funding.
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