Interim Budget Disappointed Textile Sector
The interim budget announced on Monday is a disappointment to the textile and clothing sector, according to industry representatives. Chairman of the Cotton Textiles Export Promotion Council V. S. Velayutham pointed out that the Government had only announced extension of the two per cent interest subvention till September 30, 2009, for pre- and post-shipment credit. “The industry will have to suffer for at least six more months and we do not know how many will be able to survive till then.”K. V. Srinivasan, Chairman of the Southern India Mills’ Association, said the industry was disappointed since it was expecting some relief measures. “The industry needs some support to survive and the crisis cannot wait till the next budget,” he said. Textile was one of the worst affected sectors of the current global economic slowdown. The industry was expecting allocations for the Technology Upgradation Fund Scheme, availability of working capital at lower interest rate, two year moratorium for repayment of loans, reduction of margin money for working capital and nine month credit period for working capital.
According to D. K. Nair, Secretary General of the Confederation of Indian Textile Industry, the budget was an opportunity through which the Government could have announced some relief measures. Since more than 50 per cent of the textile production in the country was exported, the global economic problems had a greater impact on it. The sector was labour-intensive and hence, it was not possible to reduce the workforce now. “The next budget will be in June and that will be too late for several units,” he said.
