Ravi KUMAR, CEO, indian DESIGNS.
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.