Home / Knowledge / News / Apparel/Garments / 'Inexplicable disregard towards T&G sector baffles me' – Mr Mehta, CMAI
'Inexplicable disregard towards T&G sector baffles me' – Mr Mehta, CMAI
14
Apr '09
Mr Rahul Mehta, President, CMAI
Mr Rahul Mehta, President, CMAI
The textile and clothing industry in India is witnessing its worst period since its inception hundreds of years ago. One single economic crisis in the US has brought down the sector to its knees which was riding high on unprecedented growth rates of the past few years. The industry has turned towards the Union government for help and has among many demands sought a two year moratorium on repayment of loans to help the sector survive through the crisis.

Other than the moratorium on repayment of loans, they have demanded an increase in duty drawback rates, interest subsidy of 4 percent on export finance and an increase in tax refunds on exports. Industry experts aver that an urgent resolution of these demands will not only help re-employ one million workers thrown out of their jobs, but will also generate employment for an additional 2.5 million people in the next few years.

Speaking exclusively to Fibre2fashion, Mr Rahul Mehta, President of the apparel trade body, Clothing Manufacturers Association of India (CMAI) and also the Director of Creative Group of Companies, which is in to the manufacturing and exports of readymade garments, commented on the pressure on domestic and exporting companies in the current scenario as well as the merits of the demands put up by the industry bodies.

Mr Rahul Mehta was kind enough to spare time from his busy schedule and gave exhaustive replies. He said, “The Indian Apparel Industry is undoubtedly going through its worst crisis since it took its first fledgling steps in the 70's. As against the heady 15% - 20% annual growth in the heydays of quotas, to the over 30% growth immediately after the abolishing of the quota regime, to the less than 10% growth last year and fears of a negative growth in 2009 – 2010, it has been a roller coaster ride for the industry”

So we asked him the obvious question as to what went wrong that the industry finds itself in this crisis, to which, he replied by saying, “Obviously, the global financial crisis has hit the industry hard. The US and EU markets constitute over 65% of our exports and the slow down in these economies have impacted our exports in a significant way. However, today's scenario has to be seen in the context of various factors”

Listing out the factors he said, “The weakening of the rupee has certainly reduced the extent of the impact, but it would be fallacy to think that the problems have been eliminated by the Dollar–Rupee parity. Consumers in the major markets also seem to have shifted towards cheaper products and therefore more economical sources of supply. Countries which are able to supply cheaper goods have therefore been less affected.

“Several of the leading manufacturing countries have taken various steps to mitigate the hardships faced by their respective garment Industries. For e.g., Vietnam has reduced bank interest to 4% and provides interest free bank loans for payment of social security; Pakistan has introduced a Special Opportunity Zone, from which one can export to USA without paying any import duty in the US.


Must ReadView All

Courtesy: Sympatex Technologies

Textiles | On 23rd Feb 2018

Sympatex, Ricosta jointly move towards sustainability

Sympatex Technologies is moving towards sustainability with its...

Courtesy: Business wire

Information Technology | On 23rd Feb 2018

CLO Virtual Fashion launches CLO 4.0 & new website

CLO Virtual Fashion, a leading developer of cutting-edge 3D garment...

Courtesy: Delta Galil

Apparel/Garments | On 23rd Feb 2018

Delta Galil 2017 sales up 16% to $1,368.1 million

Delta Galil sales for full year 2017 increased 16 per cent to...

Interviews View All

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Headhonchos
Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


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