Textile sector is also on radar in the aftermath of the Union Budget

Textile sector will also be on the radar as Finance Minister made various announcements for the industry. The pro-rural budget focused on farmers which may in turn benefit sector dependent entities.

The government imposed about 6 per cent excise on branded retail garments priced more than Rs 1000. The Finance Minister proposed to change the excise duty on branded readymade garments and articles made of textiles, with a retail sale price of Rs 1000 & above from ‘Nil without input tax credit or 6 per cent / 12.5 per cent with input tax credit’ to ‘2 per cent without input tax credit or 12.5 per cent with input tax credit’.

The textile industry took the budget declaration for textile sector with a pinch of salt. There are changes in customs and excise duty rates on certain inputs to reduce costs and improve competitiveness of domestic industry in sectors such as textiles.

Companies like Arvind; Aditya Birla Fashion & Retail; Ambika Cotton Mills, which declined by almost 6.26 per cent; 5.45 per cent; 2.14 per cent respectively on bourses and closed at Rs 239, Rs 128,Rs 753 on an intraday basis.