Hyderabad, March 1
This is a progressive Budget for textiles. All the benefits this year are for the man-made fibre industry, said
Mr Srinivas Kodali, Executive Director of Priyadarshini Spinning Mills Ltd.
He said the textile sector continued to get its due share of importance, keeping in mind its potential in generating jobs.
"With this Budget, investments will continue to flow into the sector," he said. Mr Kodali said reduction of customs duty on fibre would reduce the cost of the raw material. This would encourage consumption of synthetic yarn. Increase in Minimum Alternate Tax from 7.5 per cent to 10 per cent would prove to be an additional burden on the industry.
The increase in service tax rate from 10 per cent 12 per cent would increase cost of services across all sectors of the industry.