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The Union budget 2011-2012 has been both positive and negative for the Textile Sector.

On one hand the finance minister has proposed to provide Rs. 3,000 crore to NABARD, which will benefit 3 lakh handloom weavers, but on the other hand the optional levy of excise duty on readymade, branded and made ups industry have been converted to a mandatory 10%.

This came as a major shock to major textile sectors by large. It became even more challenging for the small and medium sized garment processing units which work primarily for branded textile units to meet their humongous demand.

M/s XYZ Creations, A Haryana based, Medium size garment processing unit which employs about 100 killed and semi-skilled workers was also a victim to the similar problem. The organisation began to witness a sharp fall in the weekly orders.