Fi­nance and Tex­tile Min­istry as­sures AEPC of an early res­o­lu­tion of the is­sues of the Ap­parel In­dus­try.

Perfect Sourcing - - Burning Issue -

Re­spond­ing to the Ap­parel In­dus­try’s re­quest for a meet­ing to ad­dress the se­ri­ous down slide in tex­tile and ap­parel ex­ports since the last eight months, Fi­nance

Min­is­ter, Hon. Piyush Goyal and Min­is­ter of Tex­tiles, Hon. Smt Sm­riti Irani, along with se­nior rep­re­sen­ta­tives of Min­istry of Tex­tiles and Fi­nance met the se­nior of­fi­cials of Ap­parel Ex­port Pro­mo­tion Coun­cil, along with stal­warts from ap­parel and tex­tile in­dus­try, to un­der­stand the is­sues be­ing faced by the en­tire value chain.

In a two hour long meet­ing, the Fi­nance Min­is­ter noted the con­cerns of the In­dus­try with re­gard to the huge block­ages in GST re­funds since the roll out of GST and the slow dis­burse­ments in Rosl. Due to the block­ages of work­ing cap­i­tal – aris­ing be­cause of the blocked GST re­funds and slow dis­burse­ments in Rosl - the in­dus­try has not been able to book or­ders in the peak sea­son, and hence los­ing out to its com­peti­tors, in a big way.

Com­ment­ing on the meet­ing, HKL Magu, Chair­man ap­parel ex­port pro­mo­tion Coun­cil said,” AEPC ex­presses grat­i­tude for the speedy re­sponse from our Honourable Min­is­ter of Tex­tiles in pre­sent­ing crit­i­cal in­dus­try is­sues along with se­nior rep­re­sen­ta­tives of in­dus­try to Honourable Fi­nance Min­is­ter and his team on Sun­day at North Block. For this im­por­tant meet­ing, the In­dus­try came to­gether, from Ap­parel, Made ups and Tex­tiles to present a uni­fied per­spec­tive that looked at the range of is­sues —mak­ing In­dia com­pet­i­tive in ex­ports, ex­pand­ing growth, and em­ploy­ment. In­dus­try ap­prised Fi­nance Min­is­ter about the cri­sis faced across in­dus­try — in em­bed­ded and in­verted taxes not be­ing con­sid­ered for re­fund as well as the huge de­lays in re­ceiv­ing GST/ROSL claims. Since over 90% of ap­parel man­u­fac­tur­ers are in the MSME sec­tor with lim­ited fi­nan­cial ca­pa­bil­ity, this has cre­ated crip­pling pres­sure. Fi­nance Min­is­ter has in­structed his team to ur­gently iden­tify cen­tral and state em­bed­ded taxes and work out a re­im­burse­ment mech­a­nism. Also, Min­istry will ex­pe­dite GST and ROSL re­funds in a time bound man­ner. FM as­sured all pos­si­ble sup­port from his Min­istry to en­able ex­ports growth and cre­ation of jobs by the em­ploy­ment in­ten­sive Ap­parel, Made ups and Tex­tile in­dus­try. In­dus­try has also as­sured that with our com­pet­i­tive po­si­tion re­stored, we would be able to re­gain lost mar­ket share, fur­ther con­sol­i­date these gains and cre­ate gain­ful em­ploy­ment in short­est pos­si­ble time.”

The in­dus­try has wit­nessed a re­duc­tion in the draw­back and Rosl ben­e­fits by over 5% of FOB since the pre GST pe­riod. This, cou­pled with the dis­ad­van­tage of around 10% faced by the in­dus­try vis-a-vis its com­peti­tors in the ma­jor mar­kets like EU, due to lack of pref­er­en­tial ac­cess, had led to In­dia loos­ing out to Bangladesh and Viet­nam in a big way.

The ap­parel in­dus­try is to­day at USD 17bn, but the in­dus­try is op­ti­mistic of record­ing a 20% growth in ex­ports by next year, if the level play­ing field is of­fered along with fa­cil­i­ta­tion of faster GST and ROSL re­funds. We are also con­fi­dent of a pickup in in­vest­ments and jobs, if the in­dus­try is of­fered some long term em­ploy­ment-linked in­cen­tives.

From (L- R) v Anil Ku­mar, ASG AEPC, Sachin Jain, MD, vardhman Group, Gau­tam Nair, Mem­ber, EC, AEPC , Sud­hir Sekhri , Chair­man EP, AEPC, Union Min­is­ter of Tex­tiles Sm­riti Irani, Union Min­is­ter of Fi­nance Piyush Goyal ,BK Goenka , Chair­man of Wel­spun...

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