The allocation to the textiles sector will see an increase of 8.1% in FY 2013 as compared to the revised budget allocation for FY 2012.
According to the Union Budget presented on Tuesday, out of the total allocation of ₹12,382 crore for the textile sector for the next financial year, ₹133.83 crore is for the Textile Cluster Development Scheme, ₹100 crore for the National Technical Textiles Mission, and ₹15 crore each. Is for. For PM Mega Integrated Textile Region and Apparel Park Scheme and Production Linked Incentive Scheme.
The Center has also allocated ₹105 crore for FY23 for the Raw Material Supply Scheme.
committed obligation
The main increase is for the purchase of cotton by the Cotton Corporation of India under the price support scheme. The Cotton Corporation will see an allocation of ₹9,243 crore for the next financial year, while the revised budget allocation for the current year will see an allocation of ₹8,440 crore. An official said that this is for the committed liability of the government towards the corporation.
The industry’s expectation of measures to control prices of cotton, which is a raw material, was not met with no change in the 10% import duty on the duty imposed. Trimming, embellishments, labels and the like at 5% import duty will now be available as duty free imports to exporters of textiles and leather garments. But, it seems that made-up and home textiles have been kept out of duty-free imports of trimmings etc.
At present, machinery like knitting and weaving machines are included in the list of machines with concessional customs duty of 5%. All these machines will attract an import duty of 7.5%.
‘Discount Review’
Finance Minister Nirmala Sitharaman reviewed customs duty exemption and tariff simplification for certain items. “This comprehensive review will simplify customs rates and tariff structure and reduce disputes, particularly for sectors such as chemicals, textiles and metals,” she said.
Industry sources said the customs duty includes ad valorem tax and specific duty. Specific duty is likely to be rationalized for certain articles of clothing and removed for certain garments.