Textile Sector

In a post-Budget report, Credit Suisse said 2020 saw fall in import duties, mainly for agriculture, textiles, metals and autos. Several sectors have been on the government radar for a while, as seen in the imposition or hiking of import duties over the past few years. It added that much of the increase in FY22 spending was from spending induced by the pandemic: Food subsidy, NREGA spending and vaccines. Some, like higher fertiliser subsidy, should also roll off.

All three companies deal in textiles. The shares of Bhilwara Spinners, Nitin Spinners and Nahar Spinning Mills companies rose 219 per cent to Rs 47; 231 per cent to Rs 239; and 524 per cent to Rs 488, respectively, during the year-to-date period of 2021, exchange data showed.

Founded in 1990 as a home textile manufacturer, the company has now diversified into paper, chemicals, and energy. Started in Punjab, the company now has customers across 100 countries. From Rs 10 per share on January 1, 2021, the price has now touched Rs 55 at Friday's close, rising as high as 409 per cent. To put things in perspective, the benchmark Sensex rose nearly 19-20 per cent in 2021.

CAIT National President B.C. Bhartia and Secretary General Praveen Khandelwal said that in the cotton textile industry there was no inverted tax structure, then why fabric and other cotton textile goods were brought under the 12 per cent bracket. Even in the man-made textile industry, at the stage of manufacturing garments, sarees and all types of made ups, there was no inverted tax issue. Without having any understanding of the stages of the textile industry such a harsh decision will be a regressive step.

Accordingly, these seven parks have been allotted a total outlay of Rs 4,445 crore for a period of five years. Besides, these parks will be set up at greenfield or brownfield sites located in different states. Subsequently, the Centre has invited proposals from state governments having ready availability of contiguous and encumbrance-free land parcel of more than 1,000 acres along with other textiles related facilities and ecosystem.