ED­I­TO­RIAL

Perfect Sourcing - - Inside - Deepti Mar­wah Ed­i­tor PERFECTSOURCING OM SAI RAM Email: ed­i­tor@perfectsourcing.net

We are now in the last quar­ter of the year and de­spite all odds, ev­ery­one is still fight­ing strong. Post de­mon­eti­sa­tion and GST, the busi­ness en­vi­ron­ment has un­de­ni­ably been af­fected and chaos rules the mar­ket. Right from yarn to gar­ment­ing, ev­ery in­di­vid­ual in the sup­ply chain seems con­fused about the new tax­a­tion sys­tem.

If we talk about ex­porters, their im­me­di­ate and pal­pa­ble con­cern is duty draw­back rates, which are on the verge of a dras­tic de­cline, as a re­sult of which they are not think­ing of adding ca­pac­i­ties but just fo­cussing on sus­tain­ing them­selves. This in turn has im­pacted ma­chin­ery im­porters who are not get­ting or­ders for new ma­chin­ery. Ac­cord­ing to them, only those ex­porters who are in mid­dle of ex­pan­sion are buy­ing and there too, pay­ment de­lay is ram­pant. Pri­vate sec­tor in­vest­ment has col­lapsed and the econ­omy is run­ning on just the one engine of pub­lic spend­ing. The most wor­ri­some as­pect of all this dis­ar­ray is the im­pact on job cre­ation. Jobs have been ex­tremely hard to come by for the youth of the na­tion. The engine that was run­ning at full steam has sud­denly lost pace, which is clearly re­flected in the drop in GDP.

The In­dian econ­omy ad­vanced 6.1 per­cent year-on-year in the first quar­ter of 2017, slow­ing sharply from a 7 per­cent ex­pan­sion in the pre­vi­ous pe­riod and well be­low mar­ket ex­pec­ta­tions of 7.1 per­cent. It is the low­est growth rate since the last quar­ter of 2014, due to a slow­down in con­sumer spend­ing and a drop in in­vest­ment, fol­low­ing the de­mon­eti­sa­tion pro­gramme of Novem­ber 2016 that re­moved 86 per­cent of In­dia’s cur­rency in cir­cu­la­tion in one fell swoop.

On the one hand, the Make in In­dia ini­tia­tive is be­ing bruited about, but, on the other, the slow pace of busi­ness is a ma­jor con­cern for most en­trepreneurs who are try­ing to re­solve the co­nun­drum of man­ag­ing busi­ness.

I strongly be­lieve that the new tax­a­tion pol­icy will reap ben­e­fits in the long fu­ture; its im­me­di­ate im­pact is re­gret­tably caus­ing a dis­rup­tion in the sup­ply chain and many small and medium man­u­fac­tur­ers plan to shut shop.

In this is­sue, we talk about Jaipur, which is a pro­gres­sive clus­ter and which is grow­ing rapidly be­cause of its grow­ing im­por­tance in both the ex­port and do­mes­tic mar­kets. Most ex­porters are now mov­ing to­wards tech­nol­ogy en­hance­ment and are work­ing to­wards build­ing com­pli­ant and state of the art fac­to­ries.

Apart from that, you will also read about labour wages that have been see­ing a lot of fluc­tu­a­tion, the im­pact of GST on the sec­tor, a com­par­a­tive anal­y­sis be­tween sub­li­ma­tion and dig­i­tal print and in­ter­ac­tions from re­cently con­cluded sem­i­nars and events.

The next is­sue will high­light the new tech­nolo­gies that will be un­veiled at CISMA, Shang­hai. The ex­hi­bi­tion is one of the truly im­por­tant plat­forms for the in­dus­try, es­pe­cially be­cause in­no­va­tions are launched pri­mar­ily at this event in the sewing, em­broi­dery, cut­ting and fin­ish­ing de­part­ments, all of which are of im­me­di­ate con­cern to us.

I hope you will en­joy read­ing the is­sue and will share your feed­back on the same.

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