Textile industry wants stable fiscal regime

The Textile ministry has sought "stable and consistent" fiscal regime for the industry, which is expected to face tough global competition with the dismantling of quota system from 2005.

"What is very essential is a stability of fiscal policy in the next 3 to 5 years so that the textiles industry, hit hard by recession, could have long term planning," Textiles Minister Kashiram Rana said, adding "frequent changes in fiscal measures upset the progress of the industry."

Rana, who had a pre-Budget meeting with Finance Minister Yashwant Sinha on Tuesday, said he wanted the finance ministry to consider the recommendations of the Steering Committee on Textiles, which recently submitted its interim report on suitable fiscal policy for the textile industry to prepare it for post-quota era with the dismantling of Multi-Fibre Agreement by 2005.

Rana said garment industry was hit by heavy tax burden which needed to be redressed so that the "hardships and impediments" to growth are removed.

He said the industry favoured customs duty reduction on import of machinery for the processing and weaving industry.

Rana has also proposed setting up of Technological Upgradation Fund for the wool industry on the lines of TUF for textiles industry.

PTI