Texprocil Lauds India Economic Measures
By Staff -- Home Textiles Today, 12/15/2008 12:00:00 AM
Mumbai, India —
Texprocil said the Indian government's new stimulus package "incorporates most of the demands" made by the international cotton textiles promotion council.
India's $4 billion in stimulus measures reduces value-added tax on textiles and some other export products by 4%, refunds the service tax provided by agents to exports, and increases the threshold of service tax refund from 2% of FOB value to 10% of FOB value.
In addition, the package includes a 2% interest rate subsidy on bank loans to some businesses, including textiles companies.
Texprocil said its chairman, Shri V.S.Velayutham, would still like to see the government ease liquidity concerns among exporters by increasing duty drawback.
The council noted China just increased export tax rebates from 14% to 17% in late November.
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