The Union Budget 2023-24 had increased the Basic Customs Duty (BCD) on all textile machinery, spares and accessories from 5% to 7.5% to be effective from 1st April 2023 to till 31st March 2025. The industry had earlier submitted the pre-budget memorandum demanding to retain the BCD on all machinery, spares and accessories at 5% as the country is depending on imports except spinning machinery, spares and accessories and this is essential to sustain the global competitiveness with high cost of capital in India. However, the BCD was proposed to be increased in the budget 2023-24 and therefore, the industry had submitted the post-budget memorandum appealing to revoke the budgetary decision. Consequently, the Government has issued the notification on 29th March 2023 giving relaxation for certain key machinery, spares and accessories, apart from bringing shuttleless looms under Nil rate of duty.
In a Press Release issued here today, Mr.Ravi Sam, Chairman, The Southern India Mills’ Association (SIMA), has thanked the Hon’ble Prime Minister, Shri Narendra Modi, Hon’ble Union Finance Minister, Smt.Nirmala Sitharaman and the Hon’ble Union Textile Minister, Shri Piyush Goyal for bringing the shuttleless looms under Nil rate of BCD. He has said that weaving segment has been the weakest link in the entire textile value chain next to processing sector and the weaving sector is predominantly in the decentralized sector and the country has hardly around 10% of the looms in the shuttleless looms category resulting in lower value addition, high cost of production, etc. He has said that though the EPCG scheme is in existence to facilitate the import of textile machinery at Nil rate, with the high volatility in the supply and demand, the industry could not fulfil the export obligation within the prescribed time and facing difficulties. Mr.Ravi Sam has said that BCD for several specility weaving machinery, knitting machinery, sewing machinery parts, components, etc., classified under certain tariff headings have been reduced from 7.5% to 5%.
SIMA Chief has stated that in the absence of Technology Upgradation Fund Scheme that expired on 31st March 2022, the decision of the Government would enhance the global competitiveness for the weaving, knitting, garmenting and technical textiles segments to a certain extent. He has added that this would encourage investments under the Production Linked Incentive Scheme, PM MITRA park and also new schemes announced by several State Governments in the country including Tamilnadu.
Coimbatore
