The highly labour intensive textile industry, which can shoulder major responsibility for inclusive growth of the country, has been overlooked in the Budget, Southern India Mills' Association (Sima) said.

Reacting to the Union budget, Sima Chairman Dr K V Srinivasan said while the industry was hoping for some relief measures to overcome recession faced by it following sudden appreciation of rupee against the dollar, high bank interests and high cotton prices, no relief measures have been announced in the Budget.

The earmarking of Rs. 450 crore for setting up Integrated Textile Park and Rs.1090 crore for Technology Upgradation Fund Scheme was only a "routine" announcement as both had already been extended funds under the 11th plan.

He expressed regret that the efforts put in by the industry as well as the Government during the last couple of years to make the industry globally competitive, achieve the targeted growth rate investments and creation of new employment for over 15 million people, have gone in vain and the budget has "totally ignored" the textile industry.

Srinivasan said the budget has also not considered the recommendations of various work groups of Texsumit-07, a national conclave organised by textile ministry, wherein the prime minister had participated and promised to take necessary steps to sustain the competitiveness of the Indian textile industry in the globalised arena.

However, the Sima chief welcomed the textile clusters for development of powerlooms in Bhiwandi and Erode.

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