Union Budget 2013: Now, ready-made for your wallet

Prices of ready-made garments are likely to come down by about 5%, courtesy the restoration of the zero excise duty route for cotton and man-made sector at the yarn, fabric and garment stages.
For instance, a garment with an MRP of Rs 100 would have earlier attracted an excise duty of 12% on Rs 30, and the the remaining 70% was treated as non-manufacturing cost, that is,it would be Rs 3.60 on the MRP of Rs 100.Now, with excise duty done away with, the cost of manufacturing and the price of readymade garments will fall.
Rakesh Biyani, joint managing director, Pantaloons, said, "The industry as a whole had been rallying for this exemption so it is a great sentiment booster for everyone in the apparel business. We expect a price reduction of around 5-7%."
The garment export industry will also fill a gap with the announcement of programmes by the National Skill Development Corporation, said A Sakthivel, chairman of the Apparel Export Promotion Council.
Jayesh Shah, director Arvind Ltd, said the levyintroduced two years ago had led to a downturn of the branded garment business.
The country's biggest man-made fabric (MMF) industry in Surat is elated with continuation of TUFS with an investment target of Rs 1,51,000 crore.
Arun Jariwala, chairman, Federation of Indian Art Silk Weaving Industry (FIASWI) said, "The allocation of Rs 2,400 crore for 2013-14 has given a major fillip to the powerloom sector."
Vinod Thapar, chairman Knitwear Club, said, "The interest rate on handloom has been halved to 6%. Subsidy on textile parks has been increased from 40 crore to 50 crore. Besides, the Rs 500 crore allocation made for effluent treatment will benefit the dyeing industry."
Home furnishing will be cheaper with total exemption of handmade carpets and textile floor coverings of coir or jute from excise duty.
Union Budget 2013 > Budget news 2013 > Economic Survey