Mumbai: The Indian textile sector considers the Union Budget 2017-18 to be growth oriented as it will enable the textile manufacturing sectors to grow at a faster rate. The Southern India Mills’ Association (SIMA) said that the cluster approach for contract farming would greatly benefit the predominantly cotton based textile industry. However, the main demand of the association of continuing the existing tax structure including the service tax and optional Cenvat route extended for textile industry till the GST is implemented has been considered in the budget.
The SIMA also said that other benefits extended such as 5 percent reduction in the tax for MSME industrial units, additional allocation to the banks for NPA accounts, cashless transaction, labour reform and relaxation of FDI norms by abolishing Foreign Investment Promotion Board (FIPB) would also benefit the textile industry.
The objective of doubling farmers’ income, housing for one crore rural Indians, skilling of youth by establishing 100 India International Skill Centres, development of infrastructure to provide end to end solution by integrating road, rail and ship would greatly benefit the textile industry.
According to the Welspun Group, the budget’s strong focus on human development and youth skills development will directly improve the manufacturing sector. The budget’s focus on infrastructure development within the country and also exporting it is a very positive step. The rural focus combined with infrastructure development is what will bring about true development. The proposed launch of ‘Swayam’ in exhaustive ICT courses and ‘Sankalp’ for skill development of youth is a step that will positively impact the nation’s overall productivity in general and the manufacturing sector in specific.
This is a budget with a positive spirit and with an intention to increase transparencies across the board. There is a lot of focus on infrastructure, housing, agriculture and rural development, which is a very good thing considering that 70 percent of India lives in rural areas and that is where the focus of the development should be.