In­dia: GST fi­nally brings some re­lief to RMG in­dus­try; short­ens lead time

Stitch World - - NEWS TRACK -

Hav­ing ob­served strikes and protests all over the coun­try for al­most 15 days after the im­ple­men­ta­tion of Goods and Ser­vices Tax (GST), there’s some good news for the ap­parel in­dus­try. The GST roll­out has re­sulted in the re­moval of check posts across 22 states. The move will re­sult in im­prov­ing the en­tire lo­gis­tics sys­tem at the ground level in the com­ing days.

’ The re­cent move will help In­dian ap­parel ex­porters, as they will not only get more time, but the cost is also likely to come down as lo­gis­tic com­pa­nies will now charge less for ‘wait­ing time’.

Ex­plain­ing how the re­moval of check posts will help the In­dian gar­ment in­dus­try, Ashok Rajani, Chair­man, Ap­parel Ex­port Pro­mo­tion Coun­cil (AEPC), in­formed StitchWorld, “This is def­i­nitely go­ing to help In­dian ap­parel ex­porters. Not only the ex­porters will get more time but the cost is also likely to come down as lo­gis­tic com­pa­nies will now charge less for ‘wait­ing time’, in terms of over­all days that trans­porta­tion trucks take to de­liver.” He also shared that his fac­tory in New Mum­bai has noted re­duced time in trans­port­ing goods as now there’s less traf­fic on the route due to the re­moval of check posts.

Ear­lier, a truck used to take 5 to 6 days to de­liver prod­ucts from Delhi to Mum­bai and now it takes only 3 to 4 days for the same. It is be­ing said that ex­porters will get an edge in terms of pro­vid­ing shorter lead time to the buy­ers post the ex­clu­sion of check posts.

Cit­ing an ex­am­ple of re­duc­tion in trans­porta­tion time of his con­tain­ers reach­ing Cochin in less than 6 hours against 12 hours, Raja M Shan­mugham, Pres­i­dent, Tirupur Ex­porters As­so­ci­a­tion ( TEA) said, “Time-sav­ing is one as­pect but down the line cost ben­e­fit should be there which will serve the pur­pose of GST and this will be clear in the com­ing months.”

GST im­ple­men­ta­tion has re­sulted in re­moval of check posts across 22 states

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.