Home / Knowledge / News / Apparel/Garments / Indian garment makers, retailers urge excise duty cut
Indian garment makers, retailers urge excise duty cut
02
Mar '12
Apparel manufacturers and retail traders in India have requested the Government to reduce the excise duty from the present 10 percent to one percent, as the garment sector is passing through a troubled phase.

The clothing sector in India has witnessed a 17 percent decline in sales during the initial nine months of current fiscal.

Moreover, in spite of extending the end-of-the-season sales (EOSS) period, the sector continues to hold an inventory of Rs. 14 billion. To lessen their inventory levels, retailers are offering heavy discounts of over 40 percent on maximum retail price, which would result in an estimated loss of Rs. 40 billion.

Hence, the Clothing Manufacturers' Association of India (CMAI), the most representative Association of the Indian apparel industry with a membership base of over 25,000 manufacturers, exporters and retailers, has written to the Ministry of Commerce, seeking cut in excise duty rates.

Rahul Mehta, President of CMAI, said the 10 percent excise duty on branded apparels has proved to be a major setback for the country's garment industry, which had grown tremendously during the last 8-10 years.

He said the garment sector in India grew at 35 percent compound annual rate, prior to the levy of excise duty in last year's Budget. Post-excise duty, clothing sales have drastically declined, he added.

The CMAI head further said that the industry needs a breather in the form of reduction in excise duty owing to increase in the cost of labour and raw materials.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Courtesy: Kolon Sport

Apparel/Garments | On 25th Feb 2017

Kolon Sport to set up JV with ANTA for Chinese market

Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...

Designer Karishma Jumani with Niraj Jawanjal, founder and director of IIFW. Courtesy: IIFW

Textiles | On 25th Feb 2017

IIFW to bring together premium lingerie brands

India Intimate fashion Week (IIFW), dedicated to showcasing the...

Interviews View All

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search