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