Home / Knowledge / News / Apparel/Garments / Review of package should be industry friendly - Mr Mehta, CMAI
Review of package should be industry friendly - Mr Mehta, CMAI
15
Dec '08
Mr. Mehta, President, CMAI
Mr. Mehta, President, CMAI
The Rs.1,50,000 Crore (35 Billion Dollar) Indian Apparel Industry remains in severe crisis zone as there is nothing to stimulate Production in the Domestic segment and inadequate incentives in the Export Sector, said Mr. Rahul Mehta President, The Clothing Manufacturers Association (CMAI).

The Reforms Package announced by the Government offers no incentives for revival of the Apparel Industry facing mounting costs, shrinking Local and Global Markets thereby compelling to cut Production and Employment.

The 2% Interest Subvention, refund of Service Tax on Services provided by C&F Agents to Exporters, increase in threshold limit for refund of this Tax paid by Exporters on Importing Commission Agents from 2% to 10% of FOB value are undoubtedly welcome measures, but fail to address the problems of the Garment Exporters, Mr. Mehta observed. The Interest Subvention is only on new orders, and only up to March 09 - leaving hardly one Order Cycle, if at all, for such a benefit.

It is also ironical that the release of blocked Funds under TUF, which was already pending from the Government, is being announced as an Incentive !

The crucial unaddressed issues of increase in Drawback and DEPB Rates and increase or removal of value caps and restoration of 4% Interest Subvention to pre-September 2008 levels were vital requirements to stimulate Exports which continue to decline for the third consecutive months with drop of 9.62% in October to 658 Million Dollars as against 728 Million Dollars in the previous year, Mr. Mehta pointed out.

It is alarming that demand shrinkage in US and EU Markets, pressure to cut prices by intense competitive vial Nations armed with higher Export Rebates and incentives like China, Vietnam, Cambodia and Bangladesh would continue to edge out Indian Exporters. Mr. Mehta lamented. In contrast, China has increased its Export Incentives 3 times in the last 6 Months, raising them from 11% to 17%; Pakistan too has announced a R&D Rebate of 6% besides a 2.5% cut in Interest Rates

One has also to note the serious decline in the target set of 11.62 Billion Dollars for 2008-09 by 24% to 8.78 Billion Dollars in a Global Market of 530 Billion Dollars where India aspires to become a 'Major Player', Mr. Mehta said.

Besides, the expected provision of interest free loans for Investment in Duty Free Capital Goods, lower interest rates on working capital, reduction in Import cost of Fabrics and Accessories and cut in Local, State and National Duties, restraints on unbridled Apparel Imports etc required to provide the much needed boost for the Industry have been ignored, Mr. Mehta lamented while urging the promised review to be more 'Industry Friendly' and urgently addressing the issues left unattended.

What is most regrettable, Mr. Mehta added, is that the Apparel Sector is being neglected in spite of the enormous Employment potential, especially for semi skilled and unskilled Workmen, and Women, and conversely, the potential for Employment loss if the Industry gets deeper in to the crisis mode.

Clothing Manufacturers Association of India


Must ReadView All

Textiles | On 26th Jun 2017

US initiates probe into PSF imported from 5 nations

The department of commerce of the US has initiated investigations for ...

Textiles | On 26th Jun 2017

USTR announces AGOA review for Rwanda, Tanzania & Uganda

The office of the US trade representative (USTR) has announced the...

Textiles | On 26th Jun 2017

Braskem invests in polypropylene production facility in US

The Board of Directors of Braskem, one of the largest producer of...

Interviews View All

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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

news category


Related Categories:
June 2017

June 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search