Textile secretary hints at removal of excise duty

The Indian garment industry is fighting with many continuous

road-blocks at the moment. And first to hit the industry hard was the implementation of 10 per cent excise duty on branded apparels, followed by signs of another economic slowdown affecting export orders, low consumer buying and increase in raw material prices proved to be the final blow. Therefore, many textile companies are in talks with banks for restructuring their loans and hoping to get some relief from the government.

Textile secretary Rita Menon is looking at giving the much required boost to the current state of the industry. The prime thing on textile ministry’s agenda is removal of excise duty on branded apparel, which according to her is most likely to be removed this year. The continuation of TUF scheme and launching textile parks through the country are also being looked into.

As far as the National Fibre Policy is concerned, it will now be a part of the 12th Five-Year Plan. This move, according to Menon, would be a major reform that would help not just for exporters but also boost the domestic market. The ministry has also taken several initiatives towards the revival of technical textiles in the country. For example, the scheme for growth and development of technical textiles (SGDTT), inclusion of major machinery under modified TUFS for 10 per cent capital subsidy and so on. It also launched a technology mission on technical textiles with two mini-missions for a period of five years, from 2010-11 to 2014-15 at an investment of Rs 200 crores, which would also be incorporated in the 12th Plan.