Ravi KU­MAR, CEO, in­dian DE­SIGNS.

Perfect Sourcing - - Burning Issue -

If these ‘tur­bu­lent times’ do not end quickly we fear that half of the in­dus­try will be wiped out within a year. The other half will fol­low suit shortly there­after. The pres­sure on prices has al­ready in­ten­si­fied by coun­tries im­port­ing out of In­dia. Do­mes­tic play­ers are also sourc­ing from Bangladesh af­ter the Gov­ern­ment opened up du­ties for them. Do­mes­tic play­ers com­pare lo­cal prices with Bangladesh where wages are still very low com­pared to In­dia. Huge money is ly­ing with the Gov­ern­ment in lieu of GST re­funds, Duty draw­back rates which has cre­ated a huge vac­cum in the terms of work­ing cap­i­tal. Banks have frozen ad­vances due to all their bad debts and in­fla­tion is also very high. Sub­si­dies started by the Gov­ern­ment to start the man­u­fac­tur­ing in back­ward ar­eas is also not a very at­trac­tive scheme as the in­fra­struc­ture is not as per the re­quire­ment. Ev­ery buyer knows that we will get re­funds on GST and they do not al­low us to add that cost in the GST. Above all labour laws re­main where they have been since 70 years. Bot­tom lines, liq­uid­ity and growth are dis­mal. With all odds stacked against the in­dus­try and the Gov­ern­ment not help­ing the in­dus­try is head­ing to­wards very tough times.

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