In another fall out of reduction of incentives like duty drawback and rebate of state levies (ROSL) on garment exports, total exports of ready-made garments from India has yet again registered a fall of more than 8% in December 2017 as compared to same period in 2016.
According to fresh data released by the Directorate General of Commercial Intelligence and Statistics (DGCI & S), exports in December 2017 fell to $1,336 million from $1,454 million in December 2016. This is for the third month in a row that exports of ready-made garments has taken a hit. As garment factories of Ludhiana constitute a major chunk of total exports, city businessmen are demanding that if government still did not announce relief to them in terms of enhancement of incentives and introduction of new subsidies, recovery was not possible in exports.
According to president of Ludhiana Business Forum Dinesh Kalra, “This is a warning sign for the economy and the government as well. The garment manufacturers and exporters are already under immense pressure to compete with low rates offered by exporters of other countries in the international market and reduction of subsidies has made export business more tough for us. The only way to save us from the turmoil is revising the rates of incentives that were reduced by the government recently.”
Speaking to TOI, finance secretary of Knitwear Club Harish Kairpal said, “This is perhaps for the first time that ready-made garments exports from India is taking such a severe beating that too for a third month in a row. It is direct outcome of the reduction of incentives by the Union government and if no corrective measures are taken by the government to tackle the situation, it will only get severe in the coming months.”