Letters to FinMin: The time is right to revive

by Ashish Garg, Managing Director, Promart Retail India Pvt Ltd

Dear Mr Finance Minister, The textile industry is going through a lean patch across the globe. Reduction in duties and provision of subsidies for textile and retail will boost this sector. With the Chinese yuan appreciating and systemic decontrol by the government, the cost of production in China is increasing significantly. If our government lowers the duty structure and gives a fresh impetus by way of significant subsidies on exports, this industry can grow phenomenally and can tap business from international markets. Tax turmoil The ideal budget for 2013-14 would reduce excise duty, introduce GST and bring down income tax. Also, the removal of service tax on rent will benefit the sector as a whole. As far as international brands are concerned, the biggest challenge for a licensor is royalty and the complicated procedures and documentation required to remit royalty earnings to the licensor’s country. Thankfully, entrepreneurs today understand the licensor’s requirements in terms of product development and design development and also the value of brand protection. Plough taxes into infrastructure The government must use our taxes towards building infrastructure to boost retail in India . Currently, infrastructure and power are the two biggest problems we face on the ground level, to expand our presence in various cities. Power is a major concern in rural areas and the government must heed this as power is a basic requirement that sustains most industries. Ashish Garg is Managing Director of Promart Retail India Pvt and is also involved in the Apple group of companies, which has forayed into businesses such as steel, coal mining, textiles, power and energy, commodities, insurance and infrastructure -As told to Nikita Peer You can send your feedback on smementor@moneycontrol.com or simply post comments below