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The Southern India Mills’ Association

Committed to Foster the Growth of the Textile Industry

Businessmen worried as textile, apparel exports dip

Say govt’s incentives required to bring sector back on track
Exporters in the city are worried due to a decline in apparel and textile exports in India.
They added that the exporters alone could not bring back India to the top in exporting apparel and textiles till the government provided them with incentives.
While expressing concern over the issue, Narinder Chugh from Million Exporters Private Limited said the Apparel and Textile Industry in India had provided employment to about 45 million people of which 12 million jobs were solely provided by the Apparel Industry.
He said apparel and textile exports were 14 per cent of the total exports in the country.
“It is the second largest sector after agriculture in providing employment to the needy. But because of poor policies of the government, less focus is being given to the industry. The Apparel and Textile Industry of India is losing its shine at the global level. In March this year, the figures suggested that the exports have declined by approximately 13 per cent. Last year, it was about 10 per cent. It is a cause of concern for all exporters in the country, who are about 8,500 in numbers,” said Chugh.
Another exporter Harish Dua from KG Exports said, “In the past few years, countries such as Bangladesh and Vietnam have left India behind. Developed nations, including the US and UK, are giving bulks orders to these countries as they enjoy favoured access through several treaties. At the same time, India is under pressure from the World Trade Organisation to phase out subsidies and incentives given to the textiles sector as it has already achieved ‘export competitiveness’.” “Technology upgrade needs funding while trade treaties need to be reviewed to ensure that India gets access for its competitive products in major markets. Above all, Indian entrepreneurs need to also focus on creating their own global brands rather than simply producing other labels,” added Dua.
IGST refunds stopped
Exporters are worried as their integrated goods and services tax (IGST) refunds, which started after the intervention of the Prime Minister’s Office, have been “stopped abruptly” in past 10 days. Narinder Chugh, who has to get refunds worth about Rs 2 crore, said he got to know from the local office that the IGST refunds had been stopped following the directions of higher-ups. Chugh said,” Earlier, the IGST used to be refunded two to three times a week, but for the past more than 10 days, no scroll has been generated. After the intervention of the PMO, the exporters had started receiving the IGST refunds. But from March onwards, Goods and Services Tax Network (GSTN) had stopped transmitting the data to various ports. Sea ports have been verbally instructed not to release anymore IGST refunds.”