2007-08 was lukewarm for the textiles sector. Announcing
sops for the sector, finance minister, P Chidambaram
said that the rejuvenated textile industry is geared
to meet the global challenge.
said that under the scheme for integrated textiles parks
(SITP), 26 of the sanctioned 30 parks have been approved
and announced to increase the provision for these parks
from Rs189 crore in 2006-07 to Rs425 crore in 2007-08.
''technology upgradation fund'' is to be continued under
the eleventh plan and will cover handlooms also. The
TUF allocation will be increased from Rs535 crore in
2007-07 to Rs911 crore in the coming fiscal year.
handloom sector will see an additional 100-150 clusters.
The health insurance covering 3 lakh weavers will be
extended to more weavers and would include ancillary
workers also. Chidambaram proposed to enhance the allocation
for the sector from Rs241 crore in 2006-07 to Rs321
crore in 2007-08.
the measures for man made fibres and yarns forward from
last year, custom duty on polyester fibres and yarns
has been reduced from 10 per cent to 7.5 per cent. Custom
duty for important raw materials such as dimethyl terephthalate
(DMT), purified terephthalic acid (PTA), mono ethylene
glycol (MEG) has been reduced from 10 per cent to 7.5
to the Budget, Sunil Gupta, director, Gupta Synthetics
said, "The Union Budget is lackluster. It has no
special benefits for the synthetic yarn industry and
demands of the industry have been ignored."