The textile industry has intensified its efforts to get duty on man-made fibres removed in the Budget itself, even when the Textile Ministry is in the process of setting up an expert group to examine the issue. In its pre-Budget memorandum to Finance Minister, Mr Pranab Mukherjee, the Confederation of Indian Textile Industry (CITI) said, "Excise and customs duties on all man-made fibre may be removed. Countervailing duties imposed on import of all fibres may be removed, since access to cheaper global fibres will improve cost-competitiveness.

The textile sector is also seeking removal of customs and excise duty on on the liquid fuels used as feedstock for their captive power plants

The textile industry was one of the drastic hit industries on the back of Global economic melt down. As a result, the labour intensive industry has observed many layoffs of the skilled work pool in FY09. Although the problems relating to liquidity in the industry was addressed in Interim Budget 2009-10, by releasing the entire pending TUFS amount till FY 09, and extending interest subvention etc; these measures didn't meet the needs of the industry.

Textile industry has decided to explore new export markets like Bahrain Kuwait, Oman, Saudi Arabia, Qatar and UAE, Latin America, Russia and Oceania; implementing National Fiber policy; inducting momentum to the implementation of Technology Up gradation Fund Scheme, Scheme for Integrated Textile Parks and Technology Mission etc. Diversifying export's portfolio of textile industry to various other countries will reduce risk of dependence on US and EU nations and improve the foreign earnings.

The exemption of excise and customs duty on liquid fuels, abolition of service charge, Rescheduling of loans for all Textile and Clothing units will reduce pressure on the industry and will help to improve liquidity in the Industry.

Textile Minister, Mr Dayanidhi Maran said the new policy should be in place within a year. While there is no customs duty on cotton, the import of synthetic fibre entails 5% duty putting the user of the man-made fibre at a disadvantage.