Published on February 5, 2018
Recently budget 2018-19 has been announced but Textile companies did not please with the quantum of fund allocation to the textile sector. The finance minister announced that the government will allocate Rs 7,148 crore for the sector. All the major textile companies were trading flat with a negative bias after the announcement.
As per the report, all the representatives of textile industry have come forward to register their "disappointment" with the government for ignoring the calls of an industry which has been "one of the most impacted by GST".
The domestic textile industry, inform its representatives, is getting flooded by imported material and it has become a concern for the SMEs operating in the sector.
Export incentives have plunged and additionally import barriers have gone down, which has resulted in imports going up by 20% already, and in some cases like in Bangladesh garments have increased by 50%. Exports are coming down every month.
Industry players said that, Textile industry is not an industry where people can make a lot of money because the margins are very small. With days to go for the budget, both the associations have called for the government to take initiatives which can help the exports get a boost.