New Delhi, July 06: The government today announced an
increase in interest subsidy for modernisation of the textile
industry to Rs 2,890 crore for 2009-10, against the Budget
estimates of Rs 1,090 crore in the previous fiscal.
The allocations for the current fiscal have been raised
on top of a huge jump to Rs 2,632 crore in the revised
estimates of 2008-09, according to the Budget papers.
However, the textile industry, facing tough times under
the impact of global slowdown, is not pleased with the Budget
announcements of Finance Minister Pranab Mukherjee.
The industry, which employs 35 million people, said it
expected tax holidays.
"The Budget is quite disappointing. We expected more. It
is good that Fringe Benefit Tax has been removed and also the
interest subvention scheme has been extended but our demand to
increase the rate to four per cent has not been met," Apparel
Export Promotion Council Chairman Rakesh Vaid said.
Confederation of Indian Textile Industry said the budget
proposals do not have the potential to bring the industry back
to growth. "Restoration of 8 per cent duty on man-made fibre
is disappointing and this will make fibre uncompetitive," CITI
Chairman R K Dalmia said.
President of the Federation of Indian Exporters`
Organisation and Tirupur Exporters` Association, A Sakthivel,
said, "We welcome the increase in allocation for textiles from
Rs 2,500 crore in 2008-09 to Rs 4,500 crore and increase in
allocation under TUFS, but interest subvention should have
been extended till 2012."
Bureau Report
