With the announcement of the BUDGET on 10th July, 2014 Mr. Arun Jaitley has taken a great step keeping in mind the various sectorial problems and has made arrangements accordingly in order to give them a boost.
This is a boost to the textile sector, the Budget has announced “duty-free” entitlement for import of trimmings (all types of decorative laces), embellishments (different types of work used in dresses and sarees) and other specified items to 5% of the value of exports from the current 3%, which will help to increase the exports and is a good boost to industry.
The government has fixed $ 50 billion textile export target for the current year. Nearly 40% of this is readymade garments. The move will also help Indian manufacturers to compete with other countries in getting more orders from global souring entities, such as Wal-Mart. This move will help to bring down the cost of readymade garments meant for export by 2-3%. The government also removed basic custom duty on specified inputs for manufacture of spandex yarn, from 5%.
Export opportunities could also be opened with the announcement of 6 mega textile clusters at Bareilly, Lucknow, Surat, Kutch, Bhagalpur, Mysore and one in Tamilnadu, the budget provides Rs. 600 Cr for this. The minister has allocated Rs. 50 Cr for a trade facilitation centre and crafts museum to promote handlooms and to set up a Hastkala Academy for preservation, revival and documentation of the handloom and handicraft sector, in a public-private partnership with the allocation of Rs. 30 Cr.
Hence, the measures have been taken to develop the textile sector, and hence the textile companies will see a boost in the coming years. So, we are positive on Himatsingka Seide Ltd.