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Budget
sops to make quality textile goods affordable: ICMF
Agencies
- Mumbai
Tax
benefits, including import duty cuts, announced in the Union budget
and plans for retiring high cost debt will make textile goods cheaper,
improve competitiveness and attract foreign direct investment in
this sector, the Indian Cotton Mills’ Federation (ICMF) chairman
Mr Chintan Parikh said.
The
benefit of budget sops for retail customers would be significant
with two to three per cent price cuts, Mr Parikh told reporters
on the sidelines of the Afro-Asian Textile Conference here.
The
sharp excise cuts, cheaper import of raw material and machinery
and completion of CENVAT chain would provide a level playing field
for all segments in the industry, he added. The budget package,
including removal of fiscal anomalies, would improve compliance
and revenue for the government, he said.
Mr
Parikh said the government is holding discussions on creating a
restructuring package providing for replacement of high cost loans
with cheap credit and longer repayment period. The investments required
to expand capacities and new units were huge at about Rs 90,000
crore and with a skilled manpower, raw material supply and stable
political climate, many foreign investors would be interested in
bringing capital in the country, Mr Parikh added.
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