Economy & Business  

Textile industry looking for tax relief
to shine post-January 2005  
 
What is India News Service, 05 July 2004, 1700 hrs

The textile sector expects the government to ease taxes so that more money is available for modernisation and technology upgradation. The civil aviation ministry is planning to ask Indian Airlines to negotiate bids for acquiring 43 Airbus aircraft. Larsen and Toubro will hand over its cement unit to Grasim. The Indian consumer is beginning to change in his spending attitudes, much to the delight of large organised retailers.

The textile sector is potentially on the threshold of a new age of growth, with the international quota regime ending in January 2005. This will open doors of the global market. Since the textile industry is highly labour-intensive, jobs opportunities will increase. Countries like China, Vietnam, Sri Lanka and Bangladesh are all building strong textile and apparel capabilities, and are more competitive than India. The industry's major demand is tax relief so that more money is available for modernisation.

The civil aviation ministry is planning to ask Indian Airlines to negotiate price bids for the 43 Airbus aircraft it plans to acquire. The renewed approach is in view of the massive difference in outright purchase prices of aircraft in the global marketplace. The move, government officials said, is being considered to give a push to the IA fleet enhancement plan which has been awaiting government approval for almost two years now.

Larsen and Toubro (L&T) will officially transfer its 16.5 million tonne cement division to Grasim Industries of the Aditya Birla Group. Financial institutions which were majority shareholders before the open offer will also reduce their stakes. With 28,000 employees, L&T will sell to Grasim 14.95 per cent of its shares for Rs 446 crore. L&T will also sell its 8.5 per cent stake of cement shares to Grasim for Rs 336 crore. 

Large organised retailers have been benefiting from changing spending habits. Purchase schemes have gone up from Rs 50,000 crore to 1,60,000 crore in the last five years, indicating the willingness of Indian consumers to spend. The growing popularity of large format stores has something to do with prices as well. Food and apparel retails claim to offer products at prices up to 20 per cent lower than other stores. The addition of services like food courts also encourage consumers to visit shopping malls, browse and purchase.

Overall:

Textile industry wants tax waivers: It hopes to modernise and be ready to take on the world in January 2005, when opportunity is expected to knock.

Indian Airlines could negotiate bids: The civil aviation ministry is planning to ask Indian Airlines to negotiate prices for 43 Airbus aircraft. 

L&T decided to hand over cement unit to Grasim: Larsen and Toubro (L&T) will officially transfer its 16.5 million tonne cement division to Grasim Industries of the Aditya Birla Group. 

Large scale retailers hit high: Indian consumers are spending more, and encouraging large format stores.