Published on February 25, 2014

Recently the interim budget has been announced with a mixed bag for production industries in the region. The textile industry is also slightly satisfied with the points announced in this budget but at the same time SMEs are disappoinnted.

Recent budget has reduced the excise duty from 12 to 10% for all capital goods, this has been one of the positive points for the industries because there has been slowdown in the investment for export sectors. The other positive of the budget was related to technology up gradation which will help the export units to achieve their planned financial arrangements and reduce there financial strees as well.

According to this budget allocation for Technology Up-gradation Fund Scheme (TUFS) has been increased from 1956.16 cr to 2300 cr. Textile exporters has asked Finance Minister for releasing funds pertaining to benefits availed under duty drawback scheme.

The Union Textile Minister is planning to connect textile sector with MNREGA (with Mahatma Gandhi National Rural Employment Guarantee) scheme, reason behind such plan is that industry will be able to get skilled labor through this scheme. Textile minister said that he has written a letter to Prime Minister to link the sector with the scheme so that shortage of manpower in the industry can be fulfilled.

For the current week industry sources said that textile industry is moving smotthly but the demand of the realted chemical is low from this sector.