TEXPROCIL Chairman Lahoti Lauds Jaitley’s Budget For Pragmatic Approach

Natural Fibers

TEXPROCIL Chairman Lahoti Lauds Jaitley’s Budget For Pragmatic Approach

The Cotton Textiles Export Promotion Council (TEXPROCIL) chairman, Ujwal Lahoti welcomed the union budget’s initiative for the textile sector and said, it was pragmatic, growth oriented and all inclusive.

“The Government had approved a comprehensive textile sector package of INR 6000 crore in 2016 to boost the apparel and made-up segments. The Budget has provided an outlay of INR 7,148 crore for the textile sector in 2018-19. I hope that the increased funds allocated for the textiles sector will cover fabrics also under the ROSL scheme,” Lahoti said.

“The Budget has increased the financial outlay under the comprehensive textile sector package for apparel and made-ups from INR 6000 crore to INR 7148 crore. This will promote exports and production in these two labour intensive sectors,” added Lahoti.

“The Government will contribute 12% of the wages of the new employees in the EPF for all the sectors for next three years. Also, the facility of fixed term employment will be extended to all sectors. These measures will lead to employment generation and contribute significantly towards the Make in India plan,” he said.

To incentivize employment of more women in the formal sector and to enable higher take-home wages, the Budget has proposed to make amendments in the Employees Provident Fund and Miscellaneous Provisions Act, 1952 to reduce women employees' contribution to 8% for first three years of their employment against existing rate of 12% or 10% with no change in employers' contribution. Lahoti welcomed this measure as it will lead to employment opportunities for women in the textiles sector especially in the value added segments like garments and made ups.

“The Budget has increased the funds allocation under the TUF Scheme from INR 2013 crores in 2017-18 to INR 2300 for 2018-19. This is a positive step and will help in clearing some of the committed liabilities under the TUF scheme,” according to Lahoti.

The reduced income tax rate of 25% allowed to companies who have reported turnover up to INR 250 crorein the financial year 2016-17 will greatly benefit the micro, small and medium enterprises, pointed out Lahoti.

“With regard to export marketing, the Department of Commerce will be developing a National Logistics Portal as a single window online market place to link all stakeholders. This is a positive step as it will provide marketing support to the small and medium sized exporters besides reducing transaction cost,” said Lahoti .

The increased budget allocation for infrastructural developments and the encouragement provided to organized farming in the Budget are both steps in the right direction, said the TEXPROCIL chairman.

However, to promote exports of Cotton textiles, the Chairman TEXPROCIL urged the government to cover yarn and fabrics under the MEIS and ROSL schemes respectively.