The textile sector is one of India's oldest industries ranking next to only the agricultural sector.
Textile industry not only provides employment to a large section of skilled and semi skilled workforcebut also contributes over 15 per cent to the nation's industrial output.
Testimony to the fact that India's textile sector holds a formidable presence is its overall contribution totaling to almost one third ofthe country's gross export earnings.
Having a wide range of spectrum from yarns and fibres to handlooms to ready to wear garments and exports, the sector is directly correlated to a number of budgetdecisions and proposals.
The past financial year has been a mixed bag for the Indian textileindustry as a whole.
The industry is looking at the Financial Budget 2013 to kick start a period of sustained growth and development.
India's textile exports declined 5.9 per cent year-on-year to $14.1billion during the April-September 2012 because of slowdown in major international markets.
With China's textile sector coming under stress, Indian markets have witnessed a good third quarter with expectations of a bullish phase in the final quarter.
Reduction of Duty on manmade fibres has been a long awaited decision that islikely to kick start Indian textile growth story.
The industry observers including Confederation of Indian Textiles Industry have already forwarded their appeal to the finance ministry.
Industry expects a reduction of duty on man-made fibres and allied raw materials to somewhere around 8 per cent from the existing 12 per cent.
Increasing production cost in China has given a window of opportunity for theIndian textile sector in the man made fibre segment.
The industry ishopeful that reduced excise duty can help increase the quantum ofproduction to compensate for the likely revenue loss for thegovernment.
Textile giants, small time manufacturers and MSME’s have also put theirweight behind the CITI’s proposal as it helps them compete withChina in a more transparent manner.
Currently import duty on importedyarn floats between 5 to 16.9%