Ahmadabad: Union Budget is around the corner, textile sector is losing all hopes of getting favorable moves. In spite of approx $62 billion worth textile industry of India, knocking on the doors of Union finance minister with a huge list of demands, negatively structured budget is being expected from Pranab Mukharjee. Industry, that resisted and survived even in extreme financial crisis, is now hoping of clocking around 10% rate in growth during 2010-11. In order to let the momentum keep rolling, incentives are expected from the government by the industry.
Primary focus of the Government for incentives is over the social sector, so textile industry is not expecting much better steps in the 2010-11 Budget. Certain things might come within this way under TUFS, Technology Upgradation Fund Scheme, apart from them most other demands are expected to be ignored, said players of the industry. Displeasure has already been expressed by Mr. Dayanidhi Maran over the issue of seeking incentives. He has been continuously insisting that industry people should concentrate over the alternative destinations for export and even in domestic market with the purpose of growth.
Amount of 4,500crores is waiting to be disbursed to the textile industry for TUFS; people dealing with the textile market believe that this demand is the only one that can be expected to be fulfilled in the Budget. Rs 1,500crores have been sought by the Confederation of Indian Textile Industry, in order to erase the backlog of 1009-10 and another additional amount of approx Rs 3,000crores for 2010-11. It is being expected that the finance minister might allocate some substantial amount under the TUFS category to the textile industry.
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