The Budget withdrew interest subvention scheme on handicrafts, carpets, handlooms and small & medium enterprises, which had faced the greatest deceleration during the global economic slowdown and had just about begun to look up. In a major blow to textile exporters, the finance ministry imposed 10 % excise duty on branded garments and made-ups and brought these under a compulsory duty regime. Textile exports therefore came under the Cenvat cycle which was optional earlier.
On the other hand, to encourage handicraft exports, which had witnessed a slump in the global meltdown, the government proposed setting up a cluster in Jodhpur. This would have some tax benefits. In the textile sector, it slashed Customs duty on raw silk from 30 per cent to 5 per cent.
Switch Asia Project
Sustainable Textiles for Sustainable Development
The SWITCH- Asia project, funded by the European Commission, seeks to promote sustainable production (i.e. development of less polluting and resource efficient products and processes) and sustainable consumption patterns in the crafts and textile industry in India through awareness raising, capacity building and policy research.