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