The Hindu : Tamil Nadu / Madurai News : `Budget will spur textile industry's growth'

Online edition of India's National Newspaper
Monday, Jul 12, 2004

Tamil Nadu

Tamil Nadu - Madurai

`Budget will spur textile industry's growth'

By Our Staff Reporter

MADURAI, JULY 11. The Madurai Spinners' Association has said the Union Budget will spur the growth of the textile industry.

The secretary, C. S. Rajendran, said the proposals for the textile sector would give an impetus to the growth of the industry.

"But there seems to be a few important clarifications such as `optional route of zero per cent and four per cent duty' and what will happen to the Modified Value Added Tax (MODVAT) on capital goods of less than ten years," he wondered. If the MODVAT on capital goods was delinked from regular inputs, and no reversal was required, this budget would be a turning point for all concerned. All the efficient units would turn the corner and generate surplus by technologically upgrading production units and face the global competition in the post World Trade Organisation (WTO) regime, he said.

The former Member of Parliament, A.G.S. Rambabu, and the Sellur Handloom Cloth Manufacturers' Association secretary, M. Balasubramanian, hailed the exemption of excise duty on tractors, dairy machinery, hand tools, ambulance and computers, and the withdrawal of CENVAT for handlooms and power looms. The CENVAT withdrawal would benefit thousands of weavers. Similarly the exemption of excise duty would enable the small farmers to buy tractors, they said.

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