In­dus­try Con­cerned Amidst De­cline in Ap­parel out­put for 10th con­sec­u­tive month

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With the govern­ment re­leas­ing the fig­ures for the In­dex of In­dus­trial Pro­duc­tion (IIP) for dif­fer­ent sec­tors, the ap­parel sec­tor com­pris­ing of a fair share of Mi­cro, Small and Medium En­ter­prises (MSMES) have raised con­cern over the de­clin­ing fig­ure for 10th con­sec­u­tive month. In­dus­try body Ap­parel Ex­port Pro­mo­tion Coun­cil (AEPC) said that the ap­parel man­u­fac­tur­ing has suf­fered the 10th straight monthly de­cline in ap­parel pro­duc­tion on ac­count of the is­sues which have arisen after the im­ple­men­ta­tion of GST. Com­ment­ing over the de­cline in pro­duc­tion, HKL Magu, Chair­man, Ap­parel Ex­port Pro­mo­tion Coun­cil (AEPC) said ap­parel man­u­fac­tur­ing is clearly in re­ces­sion as the lat­est pro­duc­tion fig­ures shows a de­cline of 4.7% in ap­parel pro­duc­tion. The ap­parel pro­duc­tion has been down for the tenth straight month which in­di­cates to­wards shrink­age in the In­dus­try. Speak­ing about the pri­mary rea­sons, he said that un­re­solved is­sues like the re­duc­tion in the duty draw­back and ROSL after the im­po­si­tion of GST, cap­i­tal block­age due to slow GST re­funds and un­cer­tain­ties on fu­ture of ex­port sub­si­dies have af­fected the sen­ti­ments of the in­dus­try.

As per the IIP fig­ures, there has been a month to month de­cline in ap­parel pro­duc­tiv­ity, from a pos­i­tive growth of 1.3 % in April 2017, May saw a fall of 5%. In June the de­cline was 3.2 % while in July, it was 5.1 %.In the month of Au­gust, Septem­ber, Oc­to­ber, Novem­ber and De­cem­ber the In­dus­try had recorded a de­cline of 6.4 %, 7.2 %, 11 %, 13.1 % and 13.5% re­spec­tively. In Jan­uary, the ap­parel pro­duc­tion recorded a dip of 10.7%.

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