New Delhi, Mar 19 (UNI) The amount allocated to textiles industry for Technology Upgradation Fund Scheme (TUFS) in the Budget 2008-09 has been increased to Rs 1090 crore but the industry feels the sum is insufficient to address its problems.
''The manufacturing industry with the largest employment has been allocated a sum of Rs 1090 crores for this fiscal for the Technology Upgradation Fund Scheme which is insufficent to address the grievances of this sector'', Confederation of Indian Textile Industry (CITI), Secretary General, D K Nair told UNI here today.
''The amount should have been Rs 700-800 crores more,'' he added.
More than 50 per cent of the garments manufactured in the country are exported, resulting in a turnover of 20 billion dollars.
Speaking on CITI Golden Jubliee celebrations yesterday, Prime Minister Manmohan Singh had assured the textile industry that the government would pay the closest attention to the problems currently plaguing the textile industry by devising appropriate strategies to further promote growth and competitiveness of the industry.
Giving details of fiscal measures taken by the Government to strengthen the textile sector, Dr Singh said the excise duty structure has been completely transformed with large scale concessions. Customs duty for a number of textile machinery items has been reduced and hosiery and knitwear items have been de-reserved from the small-scale sector.
The Technology Upgradation Fund has been extended into the 11th Plan and the scheme for Integrated Textile Parks in public-private partnership mode has also been expanded, he added.
''Other problem being faced by the industry is that there is no mechanism to refund the Central Sales Taxes (CST) and Goods and Services Tax (GST) which have been made mandatory after the Doha round. The very problem has been also recognised by Prime Minster,'' said Mr Nair.
The appreciation of the rupee has also led to reduction in textile exports, he added.
Asked whether the current recession being witnessed in the global market would affect the textile industry, Mr Nair said the problem would arise only if the demand goes down.
The textile industry will be one of the major beneficiaries of consumption boom expected due to several sops announced in the Budget 2008-09.
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