• Manufacturers in Gujarat Worried about Situation of Exports
Manufacturers of textiles and apparels in Gujarat have indicated that exports have gone down by an estimated 30% in after the cut in export incentives and after the implementation of GST. Decrease in duty drawback rates, export incentives which declined from 4% to 1.6% and GST has made products costlier. For apparel manufacturers, it was a double whammy, as some of the key global markets imposed value-added tax (VAT) on apparel exports from India. Sri Lanka and Middle Eastern countries are some of the key markets for garment manufacturers from Gujarat. Recently, UAE imposed VAT on apparels imported into their country, which further led to an increase in prices.