Textile sector has emerged as one of the biggest gainers from Union Budget 2012-13

– Two mega clusters (in Andhra Pradesh and Jharkhand)

– Dormitories for women workers in the mega clusters of handloom and powerloom

– 3 Weavers’ Service Centres (one each in Mizoram, Nagaland and Jharkhand) to provide technical support to poor handloom weavers.

– Rs 500 cr pilot scheme for promotion of Geo-textiles in the North East

– Rs 70 cr power loom mega cluster in Ichalkaranji in Maharashtra to help local artisans and weavers

– Rs 5,000 cr Venture Fund with SIDBI to enhance availability of equity to MSME sector

– Weighted deduction at 150% of expenditure incurred on skill development in manufacturing sector to overcome shortage of skilled manpower

– To modernise weaving sector, full exemption to automatic shuttle-less looms from 5% basic customs duty

– Full exemption from basic duty to automatic silk reeling and processing machinery and its parts

– Retention of existing concessional rate of 5% basic customs duty to new textile machinery; Second-hand machinery to attract 7.5% basic duty

– Basic customs duty on wool waste and wool tops reduced from 15% to 5%

– Full exemption from basic customs duty to aramid yarn and fabric used for the manufacture of bullet proof helmets

– 10% excise duty applicable to branded ready-made garments with abatement of 55% from the Retail Sale Price. Along with increase in duty to 12%, abatement enhanced to 70% (As a result, the incidence of duty as a percentage of the Retail Sale Price would come down from 4.5% to 3.6%)

– Extension of weighted deduction of 200% for R&D expenditure in an in-house facility beyond March 31, 2012 for another 5 years to promote investment in R&D.