For the first time, the Union Budget and Railway Budget merged together and announced as a single Budget giving importance for thrust areas. Yet another special feature of the budget is merging planned and non-planned expenditure enabling different Ministries to get proper allocation for meeting the expenditure. Transform, Energize and Clean India (TEC India) Vision with ten point agenda set by the Government to frame the Budget would enable the Nation not only to grow at a faster rate, but also achieve a sustained growth rate.
In a Press Release issued here today, Mr.M.Senthilkumar, Chairman, The Southern India Mills’ Association (SIMA) has welcomed the Union Budget 2017-18 and termed it as a growth oriented budget enabling all the manufacturing sectors to grow at a faster rate and the people of the Nation to improve their standard of living. The objective of doubling farmers’ income, housing for one crore rural Indians, Skilling of youth by establishing 100 India International Skill Centre, Development of Infrastructure to provide end to end solution by integrating Road, Rail & Ship would greatly benefit the textile industry that is spread across the Nation says Mr.Senthilkumar.
Mr.Senthilkumar has stated that the main demand of the Association of continuing the existing tax structure including the service tax and optional Cenvat route extended for textile industry till the GST is implemented has been considered in the Budget. The other benefits extended such as 5% reduction in the tax for MSME industrial units, additional allocation to the banks for NPA accounts, cashless transaction, labour reform, relaxation of FDI norms by abolishing Foreign Investment Promotion Board (FIPB) would also benefit the textile industry. The Cluster Approach for contract farming would greatly benefit the predominantly cotton based textile industry, according to SIMA Chief.
SIMA Chairman has hoped that the textiles being a mass consumption item, the Government would consider bringing the entire textile value chain under lowest slab rate of GST (currently announced as 5%) without any exemption to have proper compliance.