Giving importance for thrust areas, the Union Budget and Railway Budget were presented together and announced as a single budget for the first time in Indian history. Another special feature of the budget was that it merged planned and non-planned expenditure that would enable different ministries to get proper allocation for meeting the expenditure. The 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 the chairman of the Southern India Mills’ Association (SIMA) M.Senthilkumar has welcomed the Union Budget 2017-18 and termed it as a growth oriented budget that would enable all the manufacturing sectors to grow at a faster rate and the people of the nation to improve their standard of living.
Training of the youth by establishing 100 India International Skill Centres, Development of Infrastructure to provide end-to-end solution by integrating road, rail and amp; would greatly benefit the textile industry that is spread across the nation, the chairman of SIMA said.
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 per cent 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.
He 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 per cent) without any exemption to have proper compliance.