Commodity Online
New Delhi: Assocham, one of India's leading industry bodies, has put forward a series of proposal on textiles sector which it wants Finance Minister P Chidambaram to incorporate in the forthcoming budget.

Following are the proposals from Assocham:

* Planning tools like materials requirements planning (MRP) and Just-in-time (JIT) which are almost non-existent here, need to be introduced within the Indian context

* Further opening up of textile sector sans delays by reducing customs duty on import of textile machinery and equipment for minimum next five years needed

* Removal of excise duty on domestic production will promote healthy competition and encourage R&D in the segment

* Relook all schemes in various sub-segments of textile industry; bring them under single umbrella to realize actual benefits and scrap non-performing schemes and make adequate budgetary provisions for those that are doing well

* Put in place a mechanism to reimburse non-cenvatable transaction costs and levies borne by textile exporters (in the range of 12% of `FOB’ value of exports)

* Ease interest rates on export credit, premium for export insurances, speed up clearance of excise duty and central sales tax reimbursement to cushion losses of textile importers but provide boost to exporters

* Incentivize textile exporters to track down unexplored markets with high growth potential to establish strong foreign trade in US and Europe, where bulk exports take place

* Provide special incentives to firms ready to form joint ventures, partnerships, franchisee or takeover of foreign firms as this would not only help in expanding the market and creating brand value, but also cater to the latest technology needs of the industry.

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