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India:Benefits for Indian textile, leather and
related sectors in the Union Budget 2005 |
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2005-3-2
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Union Budget 2005-06 that was presented to day by Mr P Chidambaram in the morning today, carries the following benifits for the textile, polyester, leather footwear and jewellery sectors. They are listed as follows:
Textiles:
• Polyester duty cut
• Machinery to cost less
• Duties of Manmade Yarns - Polyester, Filament
Yarns reduced to 15%
• To invest Rs 30,000 crore in textiles in FY06
vs Rs 20,000 crore
• To extend insurance scheme for 20 lakh handloom
weavers
• 30 items dereserved in textile sector
Schemes:
• 10% Cap Subsidy Plan For Textile Processing
Sector
• TUF scheme to continue
• To launch manufacturing competitiveness plan
for SMEs
• To ask RBI to open window for ECBs for micro-
finance firms
• Hike in funds for technological improvements
• To extend insurance scheme for 20 lakh handloom
weavers
General:
• Leather & footwear industry customs duty
reduced from 20% to 5%
• Customs duty on industrial raw materials cut to
10%
• VAT to eliminate cascading effect of sales tax
• Pension scheme to be extended to unorganised
sector
• Processing sector to gain on 10% capital subsidy
• India infrastructure borrowing limit Rs 100 bln
next FY
• Corporate tax for domestic companies to be 30 %
with 10% surcharge
• Imitation jewellery to be cheap, branded
jewellery to attract 2% excise duty – no levy
on unbranded jewellery
• To allow MFs to launch exchange traded gold
funds
• Double-digit capital goods sector growth sign
of capacity expansion
across industries
• Manufacturing growth investment-led and even
• Govt to revise base year for WPI from 1993-94
to a more recent year
• Need to step up investment, export demand
• Need to hike FDI caps in coal mining,
insurance, retail - Demand has been consumer-
led so far
• Exports to rise $15000 crore by FY09
• To further liberalise in trade policy, promote
exports
• Opportunities in mining, trade and pension
sector for FDI
• VAT to eliminate cascading effect of sales tax
• Govt delivered on promise to accelerate foreign
trade
• Bharat Nirman to be conceived as Business Plan
with six components – irrigation, road etc
• Ministry of Agriculture to prepare road map,
housing, telecom – infrastructure in short.
• Rs 4750 crores for improving water quality
• Industrial sector output 8.9% and manufacturing
sector growth at 6.9%
• Industrial sector will generate 70 lakhs jobs
• Business confidence has been restored: FM
• 2004-05 GDP growth seen at 6.9% vs 8.5% year ago
• NCMP proposes to provide additional sum of Rs
25000 cr in the next year
• Rs 10,216 crore for Tsunami rehabilitation
• Net revenue estimated at Rs 5,194 cr
• Rs 3,400 cr to be raised from market
• Rs 4718.19 cr to come from internal sources
• Gold Fund units to be tradable |
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