Indian Textile Machinery Organization Hopes to End Import Subsidy

Concerned about the import and import of unchecked used textile machinery, domestic manufacturers in India demanded that the government stop financial subsidies for imported technology, especially from China.

The Indian Textile Machinery Manufacturers Association (TMMA) said in a pre-budget report submitted to the government: "The import of used/old looms and cheap Chinese looms is the biggest obstacle to the development of the local textile machinery industry."

It is said that the Indian Planning Commission observed that no subsidies should be granted for the import of any second-hand capital goods.

A delegation of the Indian Textile Machinery Manufacturers Association recently met with Textile Minister Maran and proposed to control the import of unrestricted used textile machinery.

The government should not be involved in technological degradation because technology changes every five years. Such imports should not be included in the technical reform fund program.

In fiscal year 2008-09, India imported approximately 1,354 used looms.

In the fiscal year 2011-12 budget, the Indian Textile Machinery Manufacturers Association proposes to eliminate distortions in the consumption tax structure. It is recommended that a uniform 8% consumption tax be levied on all textile machinery. The consumption tax on components and accessories should be less than 4% to promote the development of localization.

At present, the tariff on textile machinery in India is about 10%, and the tariff on some special machinery is 4%. Tariffs on raw materials, accessories and accessories are 8%.

Similarly, in terms of machinery imports, India has two tariff levels, 7.5% and 5%. The Indian Textile Machinery Manufacturers Association proposed a uniform tax rate of 7.5%. In addition, the tax rate for raw materials, accessories and components should be lower than the whole machine.