In­dia: Gar­ment ex­ports from Lud­hi­ana note sharp de­cline

Stitch World - - NEWS TRACK -

Gar­ment traders of Lud­hi­ana, Pun­jab are feel­ing the pinch of GST (Goods and Ser­vices Tax) ex­e­cu­tion and rate re­duc­tion in duty draw­back (from 7.7 per cent to 2 per cent) as they note a de­cline in ex­ports when com­pared to last year.

De­lay in GST re­funds has also caused trou­ble to the ap­parel ex­porters as they do not have much work­ing cap­i­tal in hand. It is be­ing said that ex­porters are yet to re­ceive the re­fund even though the ship­ments have been done.

Ac­cord­ing to traders, a de­cline of around 40 per cent has been seen in ex­ports this year. The traders now want the Gov­ern­ment to ex­tend the tran­si­tional pro­vi­sion for duty draw­back and Re­bate of State Levies (RoSL) till the be­gin­ning of the new fis­cal year in sup­port of the in­dus­try.

The ex­porters also de­mand a surge in duty draw­back rates to com­pete with ri­val coun­tries like Bangladesh and Viet­nam.

Lud­hi­ana is one of the key ap­parel man­u­fac­tur­ing hubs of In­dia and a house to sev­eral small and medium-level man­u­fac­tur­ers. A drop in sourc­ing from this des­ti­na­tion im­pacts the over­all ex­ports from the coun­try.

Ex­perts are of the view that In­dia’s over­all gar­ment ex­ports will note a 15 per cent de­cline to US $ 14 bil­lion in the fis­cal 2017-18 from US $ 17 bil­lion last year. Although the GST Coun­cil has re­duced rates on the var­i­ous gar­ment and tex­tile prod­ucts, the in­dus­try is yet to bounce back.

A de­cline of around 40 per cent has been ob­served in ex­ports from Lud­hi­ana

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