Following the dwindling demand of man-made fabrics in the domestic market, this segment of textile industry is looking towards a supportive budget for 2010-11.
In its pre-budget recommendations to Union textile ministry, the Federation of Indian Art Silk Weaving Industry (FIASWI) has proposed various policy measures for the future of Indian textile industry keeping in mind the statutory and legal framework arising out of India's commitment to World Trade Organisation (WTO).
FIASWI chairman Arun Jariwala has demanded uniform excise duty of 4 per cent on all types of yarn, cloth and garment to provide a level playing field to the man-made fabric manufacturers in Surat and other powerloom centres in the country. Also, the 4 per cent excise duty on man-made yarn should be abolished as the cotton yarn does not attract any mandatory duty.
Jariwala said, "The share of decentralised powerloom sector in production of man-made fabric is about 92 per cent and it provides direct and indirect employment to over 10 million people. Therefore, this sector should be protected from the import of cheap fabrics from abroad by continuing specific duty on the imported fabrics."
According to Jariwala, only 22 per cent of the total man-made fabric manufactured in India is exported to other countries compared to the export of 35 per cent of cotton fabrics. However, the industry leaders have demanded that the budget should make a special arrangement to include man-made fabric and garments into the focus scheme' by providing more benefits under the duty draw back scheme.
Other demands include four per cent excise duty on textile machinery and spare parts and four per cent duty on imported machinery, uniform custom duty of 30 per cent on the import of silk yarn and cloth etc.
About the implementation of goods and service tax (GST) in the textile industry, Jariwala said, "The industry is passing through a rough phase due to weak demand of man-made fabrics and garments in the country. However, the GST should be implemented after two years."
