Mumbai: Nandan Denim Ltd., has found the Budget a growth-oriented and beneficial one in long term. The Company said that theMedium and Small Enterprises (MSMEs) are the backbone of the industry and generate the maximum employment. Tax cut for the MSMEs with an annual turnover of Rs. 50 crore is a welcome gesture and will drive the growth engine as most of India’s companies will get this benefit of 5 per cent tax reduction which will be a relief for them.
According to the Company, textile industry is one of the largest employers in India and contributes about 14 per cent to industrial production, 4 per cent to the GDP and gives direct employment to around 45 million people. Labour reforms was a much sought demand and the Budget announcement will definitely help foster a conducive labour environment leading to harmonious labour relations which will further lead to higher productivity. After short-term sluggish demand due to demonetization, this will surely help boost the textile and apparel market.