The Hindu Business Line : Stitch in time?

The budget has skipped the textile industry altogether. Hit by the rupee appreciation, textile industry had asked for three legitimate demands: refund of all taxes and levies, refund of cross-subsidies, and measures to rein in the artificial appreciation of the rupee.

While most of the refunds sought were related to State levies, the industry had identified the special additional duty collected during imports in lieu of State taxes as the source for effecting the refund. Not only has the budget ignored all the demands, it has also not provided sufficient funds for TUF; already there is a backlog due to last year’s shortfall in allotted funds.

Increase in short-term capital gains for domestic investors will increase the tax-exempt Mauritius-based FIIs’ investments in the stock market, bring in more foreign currency investments and make the rupee appreciate for the wrong reasons.

To address various issues connected with inclusive growth, short-term need has been addressed through debt relief given to farming community.

The long-term need has been addressed through increasing opportunities for those below poverty line to access better education, scholarships, nutritious noon meal, hostel facilities, and other measures such as improvements in irrigation, improving yield by scientific management, allotting more funds for soil testing labs and so on.

Not enough attention has been given to bringing about inclusive growth in the near term; the opportunity well presented by the textile industry with its potential to quickly create 14 million jobs for unskilled, uneducated people currently living below the poverty line has not been taken advantage of.

(The author is past Chairman, South India Mills Association.)

More Stories on : Budget | Textiles

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page