Published on March 16, 2015

The textile sector has been operating at moderate level in India. In the month of January the textile industry announced about its current growth potential in the country. The industry may cross the turnover of USD 350 billion by 2025. The industry generates annual revenue of around 100 billion dollar.

In order to accelerate its growth the industry has asked the government to cut down excise duty on man-made fiber. The current imposed excise duty is of around 12 percent which has to be kneeled to the level of 6 percent and also remove the 5 per cent import duty and 4 per cent special additional duty. All these measures have been demanded by Southern India Mills Association. All these measures will enable the Indian textile sector to achieve sizeable growth , as this sector has not achieved any change in the growth rate in last few years. The organization also demanded an allocation of Rs.3000 crore to meet the pending cases and meet up the existing liabilities. The Textile ministry has promised to take up the matter to finance ministry and ensured to allocate the funds for this industry.

Industry has further demanded for financial assistance, increasing the credit limit from there months to nine months for the cotton working capital in order to bring stability in cotton prices and reduction of margin money from 25 per cent to 10 per cent. All these measure will assure a substantial growth coupled with fair pricing and last it will benefit the farmers as well.