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Textile, diamond industry dubs Budget 2021 favourable for state enterprises

Referring to the hike in the import duty on synthetic diamonds, Southern Gujarat Chamber of Commerce and Industry (SGCCI) president Dinesh Navadia said, “Such industry would in the coming time period flourish in Surat and India, and this will also boost gems and jewellery industry.”

By: Express News Service | Surat |
February 1, 2021 9:00:40 pm
Self-reliance push: Duties hiked, ‘old exemptions’ to be reviewedThe Union Budget on Monday focused on boosting domestic production in a variety of key sectors by hiking customs duties on final goods, bringing down costs of imported raw materials and reviewing “old exemptions”. (Express photo by Praveen Khanna)

The proposals to develop seven Mega Integrated Textile Region and Apparel (MITRA) parks and cut in import duty on gold and silver got a thumbs up from the textile and diamond industry in Gujarat. While the textile industry experts said they are hopefully that one of the MITRA parks would come up in Surat, the Gem Jewellery Export Promotion Council (GJEPC) said the reduction in import duty would help in promoting domestic manufacturing and boosting exports.

The customs duty on gold and silver was reduced to 7.5 per cent from 12.5 per cent.

GJEPC chairman Colin Shah said it was their long-pending demand to cut the import duty on gold and silver. “It is a welcome move for the domestic organised sector… The reduction in duty will help GJE become globally competitive and also boost the sector. High duty on precious metal had made our exports uncompetitive, leading to a large Indian diaspora/NRIs moving to Dubai and Hong Kong or other centres, to buy jewellery, which had an impact on employment and business in India,” Shah said.

The GJEPC chairman also welcomed the proposal of setting up of a new SEBI-regulated gold exchange. “We welcome the move as it will surely ease marketability and sale of gold,” he said.

Referring to the hike in the import duty on synthetic diamonds, Southern Gujarat Chamber of Commerce and Industry (SGCCI) president Dinesh Navadia said, “Such industry would in the coming time period flourish in Surat and India, and this will also boost gems and jewellery industry.”

Navadia also welcomed the allotment of Rs 5.54 lakh to the infrastructure sector. “If highways will be developed, and rail transportation will be developed, it will only ease mobility and reduce transport expenses,” he said.

Pandesara Weaver Co-Operative Society president and vice president of SGCCI, Ashish Gujarati, said the decision to set up seven textile parks over three years under the scheme of mega investment textile parks, which was announced in Union Budget on Monday, would position India as a fully integrated, globally competitive manufacturing and exporting hub. “We have earlier demanded the central government to allot a mega textile park in Surat,” Pandesara said.

Referring to the cut in import duty on nylon yarn from 7.5 per cent to 5 per cent, he said, “This will also boost the industry. Apart from this, import custom duty on the polyester yarn was 5.50 per cent and anti-dumping duty on it was around 15 per cent. There is no provision mentioned in the anti-dumping duty on polyester yarn, so it will also benefit the industry.”

Ved Road Weavers Association president Devesh Patel said, “We have a Free Trade Agreement (FTA) with Bangladesh and Vietnam. The textile goods manufactured by China were dumped in India through FTA adding more value to the textile goods by Bangladesh and Vietnam. Now, for dumping such goods the exporter country has to show the roots of origin and even 75 per cent of work should be done in that country.”

Federation of Surat Textile Traders Association president Manoj Agrawal, meanwhile, said the Union Budget 2021 was majorly for the farmers while there were different schemes for poll-bound Assam and West Bengal. “We gave suggestion for a garment park in the city, but it has not been looked at,” he said.

Global Fabric Resources and Research Centre chairman Girdhar Gopal Mundra, who is also SGCCI member, said more importance was given to the infrastructure in the Budget. “If good infrastructure is provided then there would be possibility of more industries, and if more industries are established, export increases. Under production-linked incentive, Rs 1.97 lakh crore has been allotted and garment and technical textiles have also been included under this head. We will come to know how much had been allotted for garment and technical textiles in the coming days,” he added.

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