Sig­nif­i­cant de­cline in ap­parel pro­duc­tion

Apparel Online - - India Canvas -

There is yet an­other dis­ap­point­ing news for In­dian ap­parel in­dus­try as In­dia’s ap­parel pro­duc­tion has shown a de­cline of 10.4%, for the pe­riod April-Jan­uary 2017-18 due to the con­sis­tent de­cline since May 2017, as per the lat­est IIP fig­ures. In­dus­try had in­di­cated ear­lier about the grad­ual de­cline in pro­duc­tion on ac­count of the is­sues which arose af­ter the im­ple­men­ta­tion of GST.

As per the IIP fig­ures, there has been a month-to-month de­cline in ap­parel pro­duc­tiv­ity from a pos­i­tive growth of 1.3% in April 2017. May saw a fall of 5%, while in June, the de­cline was 3.2% and in July, it was 5.1%. Au­gust, Septem­ber, Oc­to­ber, Novem­ber and De­cem­ber recorded 6.4%, 7.2%, 11%, 13.1% and 13.5% dip, re­spec­tively.

Re­act­ing on the same, HKL Magu, Chair­man, Ap­parel Ex­port Pro­mo­tion Coun­cil (AEPC) said, “For the pe­riod April-Jan­uary 2017-18, there has been a dras­tic de­cline of 10.4%, in the ap­parel pro­duc­tion. This has come at a time when ex­ports are al­ready reg­is­ter­ing a de­cline.” He fur­ther added that the in­dus­try is suf­fer­ing as their funds are blocked and they are un­able to pay sup­pli­ers on time. Sup­pli­ers don’t give ad­vance, since they can’t carry them for­ward for an in­def­i­nite pe­riod. This has re­sulted in de­cline in ap­parel pro­duc­tion. The big­gest de­ter­rent to the in­dus­try’s sen­ti­ments has been the se­vere cap­i­tal block­age due to the dual con­straint of de­lays in RoSL dis­burse­ments and IGST re­funds. Un­til the re­funds start flow­ing, things will not im­prove. The dip in pro­duc­tion will not al­low us to meet our ex­port tar­get of

US $ 20 bil­lion.”

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