The Union Budget 2023-24 had increased the Basic Customs Duty (BCD) on all textile machinery, spares and accessories from 5% to 7.5% to be effective from 1st April 2023 to 31st March 2025. However, the BCD was proposed to be increased in the budget 2023-24 and therefore, the industry submitted the post-budget memorandum appealing to revoke the budgetary decision. Consequently, the Government issued the notification on 29th March 2023 giving relaxation for certain key machinery, spares and accessories, apart from bringing shuttleless looms under a Nil rate of duty.
Ravi Sam, Chairman, The Southern India Mills’ Association (SIMA), has thanked Prime Minister, Narendra Modi, Union Finance Minister, Nirmala Sitharaman and the Union Textile Minister, Piyush Goyal for bringing the shuttleless looms under the Nil rate of BCD. He said that BCD for several speciality weaving machinery, knitting machinery, sewing machinery parts, components, etc., classified under certain tariff headings have been reduced from 7.5% to 5%.
SIMA Chief has stated that in the absence of the Technology Upgradation Fund Scheme that expired on 31st March 2022, the decision of the Government would enhance the global competitiveness for the weaving, knitting, garments and technical textiles segments to a certain extent. He has added that this would encourage investments under the Production Linked Incentive Scheme, PM MITRA Park and also new schemes announced by several State Governments in the country including Tamilnadu.