The diamond and textile industries have given a mixed response to the Union Budget. Experts said that there was much expectation from Union Finance Minister Pranab Mukherjee, but nothing much has come forth for the industries.

Prior to the budget presentation, diamond and textile industry experts were hoping that certain benefits will be extended to them. The South Gujarat Chamber of Commerce and Industry called a meeting after the budget and also held a discussion with past presidents, and industry experts.

Nilesh Mandlewala, president of the South Gujarat Chamber of Commerce and Industry, said: “We were hoping that something would be done for the diamond and textile sectors, which employ as many as 20 lakh people. But nothing much has been done.”

Mandlewala, also a textile businessman, said: “We hope that the duty on semi-automatic looms should be removed under the TUF (Textile Upgradation Fund) scheme. The weaving industry in Surat is decentralised. Semi-automatic looms should be included in the TUF scheme, which has, however, not been done.”

He added: “Our expectation was that the capital subsidy in TUF scheme should not be reduced, but it has gone done from 20 to 15 per cent. We were hoping that the TFO machine would be included in capital subsidy, which has not been done.” He further said that even the Excise duty on yarn has been increased from four to eight per cent, contrary to their expectations. “Surat is becoming the embroidery hub and our hope was that Customs duty on embroidery would be reduced, but nothing has been done in this regard.”

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