Mumbai, Mar 2 (UNI) Disappointment was writ large on the face of country textilemen anticipating some first aid from the Union Government as exports declined by over 22 per cent, due to a surging rupee.
As against relief measures a status quo was maintained for the textile industry, a spokesperson for Arvind mills said commenting on the Union Budget for 2009-10.
The Budget was modest for the industry. ''Having accomplished the Excise Duty as well as Custom duty reforms for the Industry, reduction and rationalisation of Import Duty on Cotton to zero per cent was expected to provide relief when cotton prices rule all time high'' he said. Industry was also expecting correction in fire import duties.
The Budget had announced leap frog changes in Indirect Taxes especially addressing long awaited reductions in CENVAT Rate to 14 per cent, reduction in Excise Duty for Pharma and automotive sector and selective changes in Customs duty. Reduction in Excise Duty would certainly be anti-inflationary, but importantly along with higher disposable income would spur growth in domestic consumption would be the driver for growth and investment in manufacturing Sector.
CENVAT reduction also reaffirms moving forward to a moderate rate GST by 2010, the spokesman said.
UNI VK GR MP KN1809