“It is a positive, progressive, growth-oriented and forward-looking Budget. We are thankful to the Government for fulfilling a long-standing demand of industry of abolishing the Anti-Dumping Duty (ADD) on PTA. Some of the interesting announcements/steps in the Budget include a proposal to set up a dedicated Investment Clearance Cell to provide ‘end to end’ facilitation and support, 9,000 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 and easing of tax filing for start-ups. These are some import steps towards easing the day-to-day functioning of MSMEs as also providing a conducive ground for investors.”
AEPC is studying the proposed scheme for revision of duties and taxes on exported products in which exporters are to be digitally refunded duties and taxes levied at the central, state and local levels, which are otherwise not exempted or refunded. This is an important area where there has been significant shrinkage in policy support in last few months. The council is keenly looking forward to an effective substitution of MEIS scheme that has been withdrawn for the sector. The apparel sector presently has the ROSCTL scheme for refund of embedded taxes. However, the same is not adequate to provide a level playing field with other countries with preferential market access and to mitigate the still prevalent relatively high transaction cost.
Raja. M. Shanmugham, President, TEA
“It is a people-oriented Budget, particularly for women. The measures announced in the Budget will help in the overall development of economy. The allocation of Rs. 100 lakh crore for investment in infrastructure will help reduce the logistics cost, as now poor logistics is one of the hindrances for apparel units to attain export competitiveness. The MSMEs can benefit by obtaining invoice-based loan from NBFC. The fund allocation is only Rs. 761.90 crore when the pending claims to the industry are to the tune of Rs. 8,500 crore and he felt that this will not attract the industry to go for modernisation and hopes the Government will consider and address the issue.”
T. Rajkumar, Chairman, CITI
“We are happy regarding the abolition of ADD on PTA, which is a basic raw material of the MMF segment. If Indian textile industry has to achieve the market size of US $ 350 billion by 2025, it cannot be done without making our raw materials available at an internationally competitive price. The decision to digitally refund duties and taxes levied at the central, state and local levels under RoDTEP to the exporters, such as electricity duties and VAT on fuel used for transportation, which are not getting exempted or refunded under any other existing mechanism at the earliest will help the exporters resurrect their position in the international market. The extension of the debt restructuring window by another one year for more than 5 lakh MSMEs is being considered. Government e‐Marketplace (GeM) for creating a Unified Procurement System in the country for providing a single platform for procurement of goods, services and works will offer a great opportunity for MSMEs.”
Ashwin Chandran, Chairman, SIMA
“In the backdrop of economic slowdown and recession, it is a really a Budget which fulfils some demand. We appeal to the Government to announce a special scheme for cotton development. The Ministry of Textiles has already submitted a proposal for Technology Mission on Cotton – II in this direction. We also appealed to the Government to extend the corporate tax reduction extended for companies and cooperative societies to the partnership firms to have a level playing field and boost investments.”
Dr. K.V.Srinivasan, Chairman, Texprocil
“The Budget is positive, growth oriented and in the right direction. The decision to review the Rules of Origin under all FTAs, then strengthen the safeguard measures to deal with surge in imports and the review of all custom duty exemptions will protect the domestic manufacturers which in turn will encourage ‘Make in India’ initiative.”
Sanjay Jain, Managing Director, TT Ltd.
ADD on PTA abolished to benefit the textile Industry. The downstream industry of T&C will benefit a lot because of the removal of ADD on PTA. Announcement regarding Technical Textiles Mission is a fantastic move. It will lead to capacity building and import substitution. Though we are waiting for the fine prints, there’s undoubtedly tremendous scope. Reviewing the Rules of Origin will help reduce imports from Bangladesh, etc. that is plaguing textile industry.