Why we can expect a strong turnaround in Textile & Clothing Sector in coming months…
Scheme for Capacity
Building in Textile Sector (SCBTS) named ‘SAMARTH’ under Ministry of Textiles, with a huge outlay of Rs. 1,300 crore along with other parallel skilling programmes by the Government, will go in a big way to reduce the skill gap of the industry, and more specifically provide a value-added employment opportunity to rural women.
Devaluation of rupee by 9% in the last few months, will make the industry competitive globally and imports dearer.
Import duty on about 400 items being enhanced, will provide relief to the industry which was post-GST hit by huge imports due to import barriers reducing significantly.
Two important GST decisions in last 3 months which have allowed refund of excess
ITC to the processing and fabric industry, have reduced the cost of fabric by 3-4%, especially MMF fabric.
Relief to the SME manufacturers (industry is largely populated by SME) by easing the GST Returns procedure and other GST Reforms.
Accelerating the refund of GST dues to the industry, which has eased working capital pressures on the industry.
Domestic demand picking up due to settling down of GST systems, rural demand picking up due to MSP increase and good monsoons.