Texprocil Demands More Support
By Staff -- Home Textiles Today, 1/26/2009 12:00:00 AM
Mumbai, India —
Texprocil – India's cotton textiles export promotion council – expressed disappointment in the Indian government's second round of stimulus spending, saying the new package does nothing to help textiles exports.
India's latest stimulus effort allows industries to borrow more from abroad and eases internal lending rules. However, Texprocil chairman Shri V.S. Velayutham said in an announcement that the government's 2% duty drawback rates failed to meet the industry's expectations. Texprocil, a government-sponsored council, had been pushing for an increase on duty drawback of 2% over the pre-September 2008 rates.
"On the other hand, competing countries like China have pro-actively increased tax rebates from 13% to 17% in the year 2008 in order to support growth of labor-intensive sectors," the council said in a news release.
The council is now appealing to the prime minister's office to create a special stimulus package that addresses the needs of businesses involved in India's export of cotton goods.
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