Significant decline in apparel production
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.”