Indian machinery manufacturers call on the government to cancel preferential policies for second-hand imports

Business Club October 21st India's domestic machinery makers called on the government to end financial incentives for imports of technology, especially imported technology from China, in order to curb the import of uncontrolled second-hand textile machinery.

An expert pointed out that the import of second-hand and low-cost Chinese looms is the biggest obstacle to the growth of Indian textiles. Recently, the Textile Machinery Manufacturers Association (TMMA) submitted a pre-budget memorandum saying that the planning committee said that it should not provide subsidies for the import of any used machinery.

In this regard, the Association has already proposed that Minister of Textile Mr. Marang restrict imports of used textile machinery. The financial subsidies under the Technology Update Fund plan should not be provided for such imported machines. They also suggested that the distorting factors of the consumption tax structure of the 2011-12 Budget be abolished.

In addition, the Textile Machinery Manufacturers Association also recommends that the consumption tax on all products of textile machinery should be unified at 8%. At the same time, a tax of less than 4% should be imposed on parts, components and accessories in order to encourage the development of the domestic textile machinery industry.

The textile machinery industry in India has been trapped in decades of old technology, with low efficiency, high power consumption, and many maintenance. In 2008-09, India imported approximately 1,354 used looms from China.