After repetitive responses from diverse industry groups, the government has declared an increase in duty drawback rates. The increase rates over 102 items are expected to bring relief to the majority of the companies that are associated with the mentioned items.
Textile industry representatives have come ahead to report their dissatisfaction with the government for overlooking the request of a sector that has been at the top position in the list of the most GST impacted.
Sanjay K Jain, president, Confederation of Indian Textile Industry (CITI), “The announcement point outs wool products that plays a significant role in the functionality of the textile industry. The disappointment was due to ROSL for garments and yarn fabrics or demands for enhancing the drawback were ignored. This happened in such conditions where the industry is going through some tough times.”
The Indian domestic textile market is presently flooded with imported materials which have become a headache for the Small and medium enterprises in terms of functioning in the sector.
Sinha added that incentives of export have come down drastically and so are the import barriers. This has ultimately uplifted the imports by 20%. The ratio of exports has dropped heavily recently and with the same momentum is expected to reduce on monthly basis.
There has been a drop of 3% in overall growth rate in apparels and textile market in the month of December compared to the same period of 2016.
Sinha said that the Textile industry isn’t that categorized sector that earns lots of profits with its products, the manufacturers earn less owing to the small margins.
Large Number of Imports Hampering The Domestic Textile Market of India https://t.co/usUpFBwmeA pic.twitter.com/ZsJ0G1Dw3D
— Syndicate Market Research (@Syndicate_SMR) October 23, 2020
Thus looking forward to the budget, both associations have pleaded to the government to put some efforts and amendments that can help the textile industry to uplift its performance.
One factor that is helping the textile industry to remain in profit with the line margin is the growing trend of online shopping.
