What is your view on recent budget announcement by the government?
The most important step in this Budget for the Textile Industry was the removal of the Anti-dumping duty on PTA, which was a long standing demand of the Textile Manufacturing Value Chain, as PTA is a crucial input for polyester production.
This will potentially open up the MMF Value Chain, and give a fillip to the entire MMF industry and enhance its global competitiveness. Technical Textiles, Home Furnishing, Sportswear Industry, Sarees, Dress Materials etc, will all benefit greatly from this move.
This move has the potential of being an important game changer for the MMF segment of the Industry. Other than this, there are several other measures which could benefit the Textile Industry, but which appear to be work in progress at this point of time – such as the Technical Textile Mission, a review of the Rules of Origin especially in our FTAs, a review of cheap imports of goods being made by our MSME Sector, refund of all the Taxes and Levies for Exports, and the targeting of making every District an Export hub.
The proposed financing of Invoices of the MSME Sector could again be a huge benefit to the Industry, which is largely comprised of the MSME Units. If indeed all these plans fructify as per the stated goals and objectives, this could be a landmark Budget for the Industry.
Rakesh Biyani, President , CMAI
The Apparel Export Promotion Council congratulates the Finance Minister on effectively addressing some of the key issues of the sector especially in the areas of Ease of Doing Business. A dedicated Investment Clearance Cell proposed to be set up will provide “end to end” facilitation and support, 9000 Km of economic corridors, quality standard orders as per PM’s vision of “Zero Defect-Zero Effect” manufacturing, National Logistics Policy with single window e-logistics market with focus on generation of employment, National Logistics policy for making MSMEs competitive, Rs.1.7 lakh crore for transport infrastructure in 2020-21, simplified return with features like SMS based filing for nil return and improved input tax credit flow, enhancing digital connectivity, support for working capital, financing for MSMEs, 5 year exemption from audit for MSMEs & easing of tax filing for startups are some import steps towards easing the day to day functioning of MSMEs as also providing a conducive ground for investors.
I would like to thank Hon’ble Prime Minister of India, Hon’ble Finance Minister, Hon’ble Minister of Textiles & Hon’ble Minister of Commerce and Industry for announcing a positive, progressive, growth oriented and forward looking budget and also for fulfilling a long standing demand of industry of abolishing the Anti-dumping duty on PTA.
I would like to thank Hon’ble Prime Minister of India, Hon’ble Finance Minister, Hon’ble Minister of Textiles & Hon’ble Minister of Commerce and Industry for announcing a positive, progressive, growth oriented and forward looking budget and also for fulfilling a long standing demand of industry of abolishing the Anti-dumping duty on PTA.
Dr A Sakthivel, Chairman. AEPC
The increase in drawback varies from -0.1% to 0.5%. For most items it is approx 0.2% to 0.3%. The increase is not much but any increase helps. At this moment even a small help will make big difference.
Naseer Humayun, MD, Indian Designs
Earlier we used to get 6%jo margin which has come down to 2% now. The biggest problem is that the we do not get GST refunds on time so there is a lot of problem in cash flow since we do not have enough working capital and money gets blocked. This creates a huge problem and we are not able to accept new orders. Drawback rates reduction will not be so beneficial in solving the cash flow issue which is the biggest problem for us at the moment.
Umesh Kumar , Jaipur Sourcing Hub
The change in drawback rate is very less and cannot be a considered a big consideration for apparel sector and no big impact can be expected out of it . Also the government has withdrawn MEIS which again has put exporters in tough situation.
Rajeev Bansal, MD, Celestial Knits
