Forthcoming budget likely to set cotton textile industry rolling

Cotton Textiles Export Promotion Council of India (Texprocil), a government constituted body has put forward their proposal to reinstate the benefit as investments made during the 18 month gap are eligible investments before and after extension of the TUFS with the Indian Textile Ministry They have assured that if the government accepts the sector’s demands in the forthcoming Budget and should the Rs 1,000 crore of TUFS money surrendered is given back to the textile industry, the textile industry would invest up to Rs 4,000 crore and set in motion the process of capacity creation 50,000 new jobs. As, the cotton industry has the capability for doing so. Texprocil Deputy Chairman R K Dalmia said that they have urged the government that Technology Upgradation Fund Scheme (TUFS) should be extended during the blackout period from June 29, 2010 to April 27, 2011, when the scheme was suspended to all cases which have been left out for no fault of the industry. Texprocil is also looking forward to duty cut on textile machinery and extending interest rate subvention of three percent on rupee export credit to cotton textile exports to take the edge off the high cost of export finance. The Indian textile industry has the potential to perform even better but due to the high tariffs imposed by some countries and inequitable Free Trade Agreements (FTA’s) signed by others are certain hurdles which has to be faced by the industry’s achievement.