BUDGET 2014-15 Textile and Apparel Sector

Textile Ministry's budget increased to Rs. 5697.43 crores from last year's Rs. 4698.8
crores. TUFS allocation increased to Rs. 2300 crores, SITP to get Rs 240 crores,
TMTT to get Rs. 43 crores and ISDS to receive increased allocation of Rs. 268
crores
To set-up a Trade Facilitation Centre and a Crafts Museum in Varanasi to promote
handloom products of Varanasi with an investment of Rs. 50 crore.
Government to set-up eight Textile Mega Clusters at Varanasi, Bareily, Lucknow,
Surat, Kuttch, Bhagalpur, Mysore and one in Tamil Nadu with a sum of Rs. 200
crore.
To initiate a Pashmina Promotion Program (P-3) in Jammu & Kashmir with a sum of
Rs. 50 crore.
Basic Customs Duty (BCD) on Raw materials (PTMEG etc.) required for
manufacturing of Spandex yarn reduced from 5 percent to Nil.
BCD on ethane, propane, ethylene, propylene, butadiene and ortho-xylene reduced
from 5 percent to 2.5 percent.
To encourage exports of readymade garments, Govt. proposes to increase the duty
free entitlement for import of trimmings, embellishments and other specified items
from 3 percent to 5 percent of the FOB value of their exports. (3 percent of the FOB
value in case of leather garments)
Excise duty reduced from 12 percent to 6 percent on footwear of retail price
exceeding Rs. 500 - 1000 per pair. Footwear of retail price up to Rs. 500 per pair will
continue to remain excise duty exempted.
To exempt PSF and PFY manufactured from plastic waste and scrap PET bottles
from excise duty with effect from 29th June, 2010 to 7th May, 2012. However, such
PSF and PFY will be levied excise duty of 2 percent without Cenvat benefit and 6
percent with Cenvat benefit from the specified date.
Service Tax on loading, unloading, storage, warehousing and transportation of
cotton, whether ginned or baled, is exempted.