A reduction in import duty from 10% at present to 5% on machinery and introduction of a mechanism to eliminate delays in disbursement of assistance under Technology Upgradation Fund Scheme (TUFS) are some of the fiscal measures suggested by the Prime Minister?s panel for the textile sector in the forthcoming Budget.
An extension of post shipment credit period from the current 90 days to 180 days has also been suggested.
Besides this, the committee has recommended a 2% additional interest subsidy for man-made fibre (MMF) manufacturers.
These proposals form part of the report submitted by a high-level committee, headed by National Manufacturing Competitiveness Council (NMCC) chairman V Krishnamurthy, to PMO.
?The report of the committee has been sent to the PMO and the recommendations which are expected to reverse deceleration the growth in textile sector are likely to be implemented in the Budget?? a senior official in the NMCC told FE.
Textile sector has been picked up for relief as it is the second largest employers after agriculture in the country. It also earns a major chunk of foreign exchange, however, a continued appreciation of Rupee has upset the bottomlines of exporters and producers during the last one year.
