Surtis termed it ‘ordinary’ as it has not addressed any of their long-pending demands
The Union budget evoked lukewarm response from the textile sector of Surat. According to businessmen and experts, there is nothing new in the budget (except some insignificant sops) and the finance ministry has ignored the long-pending demands.
“We welcome the announcement of developing mega cluster in Surat, but the finance minister has not been clear if the cluster will be for handloom sector or for the entire textile sector. In the budget, there is no allocation for the embroidery sector and the weaving units,” said Arun Jariwala, president of Federation of Indian Art Silk Weavng Industry (FIASWI) and a highly respected figure of the textile industry.
According to Jariwala, long-pending demand to abolish duty on polyester yarn and fabrics has not been addressed in the budget. No new policy has been announced for the sector, which is passing through a bad phase.
Mahendra Katargamwala, president of Southern Gujarat Chamber of Commerce and Industry (SGCCI) termed the budget as a mixed one, addressing issues related to textile and diamond sectors. “Demands that are not included in the budget will be raised with finance ministry,” he said.
What the textile sector got
- Developing Mega Cluster in Surat (though it is not clear whether cluster will be for the handloom and handicraft sector or for entire textile sector)
- 5% customs duty on stretchable fiber (used for making garments) abolished
- Increasing the investment limit in SME sector
- Customs duty on ancillary products used for readymacle garment sector (buttons, chains, threads and others) brought down from 5% to 3%
Expectations of the textile sector
- Demand to decrease duty on polyester fabric from 12% to 6% or abolish it completely. Textile sector wants duty on polyester fabric to be removed.
- Anti-Dumping duty on polyester yarn and polyester fabric
- Abolishing 4% import duty on import of textile machines and ancillary equipment.