The Union budget 2016 for the textile industry brings diverse reaction from the textile sector. According to Tirupur Exporters’ Association, president A. Sakthivel, the budget have brought cheer to textile manufacturers in the State as funds have been allocated for Technology Upgradation Fund Scheme and basic customs duty has been exempted for import of specified fabrics (for manufacture of garments for exports) of value equivalent to one percent of FOB value of exports in the preceding financial year, which will give a boost to garment manufacturers in the State.

While, M. Senthil Kumar, chairman of Southern India Mills’ Association is of the view that the Government has met one of the main demands of the industry and is continuing the optional Cenvat route on cotton textiles.

Apart from the allocation of Rs. 1480 crore for Technology Upgradation Fund Scheme, there should be more funds for pending subsidies since September 2014 under the scheme.

The basic customs duty has been reduced only for specified varieties of manmade fibre and filaments from five percent to 2.5 percent which would marginally benefit the technical textiles.

According to Indian Texpreneurs Federation, the levy of two percent excise duty on branded readymade garments of more than Rs. 1,000 MRP seems to be a move to prepare the sector of GST regime.

As per Confederation of Indian Textile Industry (CITI) the move to reduce customs duty on specified fibres and yarns will improve India’s competitiveness. But the excise duty on readymade garments could have been postponed till the integration with GST, covering the entire textile value chain.

R.K Dalmia, chairman of Cotton Textiles Export Promotion Council said that duty free imports of certain fabrics for export of garments should be available for made up sector too.