Shot in the arm for India Inc: Sanjay Lalbhai

Some of the measures announced in the Budget mobilise and encourage new investment in the textiles industry. These measures will enhance the buoyant mood for large investments in textiles and double India's share of world trade to 8 -10 per cent.

However, the present labour laws may continue to be a constraining factor in mobilising investment at a pace at which it is intended. The development of domestic market is equally important. The thrust on rural India, agriculture and lowering of duties on textiles will definitely expand the market.

FDI in retail is essential to stimulate the growth in the domestic market and will also add jobs in textile and retail sector. It will be a shot in the arm for the Indian textile industry, build 'Made in India' Brand and pave way for promoting Indian brands abroad.

VAT should also be extended fully to the textile sector, covering fabrics. It will cut down the burden of input taxes which are embedded in the costs and exported.