The Intimate Apparel Association of India (IAAI) expresses its gratitude to the Hon. Finance Minister of India, Shri. P. Chidambaram for his move of rolling back excise duty from the ensuing financial year. The Centre had levied 10% central excise duty during 2010-11 and increased to 12% during 2012-13 budgets. This rollback comes at a time when the branded apparel industry is fighting hard to sustain itself in the face of price rise, import duties and inflation.
The decision of zero excise duty on fibre, yarn, fabric and finished garments also brings great relief to the intimate apparel industry which will gain immensely from the decision. It is a huge breather for the industry which has been going through a dull phase for the past two years, coping with the rising prices of raw material and competing with unbranded players in the industry.
Mr. Rakesh Grover, President, Intimate Apparel Association of India, says, “IAAI, in close collaboration with CMAI, FOHMA and Ludhiana Knitwear Association, has been working ceaselessly for the past two years to seek removal of the excise duty. It brings immense pleasure to see that the sincere effort put by the association has finally paid off. We congratulate our entire fraternity for extending their whole-hearted support to the cause.”
The decision will not only provide a boost to the manufacturers and retailers of intimate garment industry but is also expected to raise consumer demand. It will also be a great boost to the skilled and unskilled labour force, especially the women employees, who had been facing the danger of lay- offs in these unsettled times.
For the apparel industry in general, the unprecedented rise in the raw material cost specially yarns, led to an overall increase in production cost. But the cost could not be carried forward to the consumers. This resulted in great losses for the manufacturers and retailers. Though the intimate apparel industry did not go through such adverse situation, it did experience drop in sales.
This concession made by the government is a great encouragement to the industry in its low times and a better growth in terms of consumer demand and sales can be expected from the industry in the coming quarters.
An apex body striving to bring more success and development to the intimate apparel industry of India, the Intimate Apparel Association of India (IAAI) was formulated in 2010. The Association Harbours one vision in mind, which is to promote, advance, expand and develop Indian Intimate Apparel Industry such that it may soon be a force to reckon with not only in the Indian Markets, but also globally.
Being the fastest growing segment of the apparel industry in India, the association acts as a steering force in the intimate apparel business that guides it into a more illustrious and distinguished future.
Having sprouted from noble and visionary thought, a combination ofinnovative ventures, creative campaigns and well planned strategies is what the IAAI aims to implement to ensure that growth takes place at an accelerated pace.