The Budget has left the textile sector smiling with extension in the TUFS Scheme.
The FM also announced a hike in provision for Textile Parks from Rs 189 crore to Rs 425 crore. The government will also provide Rs 911 crore for the textile technology fund.
Further, the customs duty on polyester fibre and yarns has been cut from 10% to 7.5%.
Nagarajan Narasimham of Crisil says, "Textiles is a definite beneficiary. We looked at the outlay almost increasing by about 60-70% and the sheer fact that it is being continued for next few years is a definite positive. Also, reduction in duties on raw materials on the manmade fibre side both the intermediate and the final product is a definite positive for the sector."
Nagarajan Narasimham of Crisil says, "Textiles is a definite beneficiary. We looked at the outlay almost increasing by about 60-70% and the sheer fact that it is being continued for next few years is a definite positive. Also, reduction in duties on raw materials on the manmade fibre side both the intermediate and the final product is a definite positive for the sector."
