Home / Knowledge / News / Apparel/Garments / Garment exporters suffering recessionary trend – GEA
Garment exporters suffering recessionary trend – GEA
17
Sep '09
The worldwide recession which started after the collapse of Lehman Brothers during last year is showing signs of recovery, as revealed by the latest data released by the US Government and World Trade Organisation (WTO). Indian Government has also expressed confidence in the speed of the economy to recover and stabilize.

However, in an exclusive interaction with Fibre2Fashion Surinder Anand, Executive Secretary, Garments Exporters Association, pointed out the Garments Exporters are still facing crisis because of worldwide recessionary trend and low unit value realization from overseas markets and it would take some more time for the world economy to be normal and the clouds on the Garment Exports to evaporate.

Mr.Anand further observed that the declining trend in the growth rate of garment exports has continued during the current year due to worst ever global slowdown which started during 2007-08 and intensified to a crisis in 2008-09. As against target of US$ 11.6 billion for the year 2008-09, the exports were only US$ 10.1 billion dollar, short by over 13% and only 4% above 9.7 billion dollar achieved during the year 2007-08.

GEA had drawn the attention of the concerned authorities regarding difficulties being faced by Garments Exporters because of global economic slowdown, adverse fiscal and trade policies of the Government and withdrawal of some of the export sops which were earlier granted to exporters.

As the relief packages so far announced by the Government in the Budget proposals and Foreign Trade Policy have failed to provide adequate compensation to exporters, Mr.Anand has stressed the need to provide immediate fiscal relief to make garment exports competitive by increasing the duty drawback rates by 5 per cent and restoring 4 per cent interest rate subvention and also grant full income tax exemption under section 80 HHC for the next three years to help the exporters to overcome the present crisis.

The Government should also completely exempt exporters from Service Tax to avoid blockage of capital of the exporters as the procedure for refund is the time consuming, resulting in unnecessary delays and harassment. The garment exporters at present are going through a serious crisis and Government must come forward to extend the necessary fiscal relief, said Mr.Anand. Apart from taxation relief, the Government should also reduce the transaction costs by simplifying administrative procedures. These include reducing delays at custom clearance of goods, improving loading and unloading of cargo and upgrading infrastructure to avoid congestion at various ports.

The Minister of Commerce & Industry, Mr.Anand Sharma, while announcing the new Foreign Trade Policy had also stressed the need to “follow a mix of policy measures including fiscal incentives, institutional changes, procedural rationalization, enhanced market access across the world and diversification of export markets. Improvement in infrastructure related to exports; bringing down transaction costs, and providing full refund of all indirect taxes and levies, would be the three pillars, which will support us to achieve this target. Endeavour will be made to see that the Goods and Services Tax rebates all indirect taxes and levies on exports.”

GARMENTS EXPORTERS ASSOCIATION


Must ReadView All

Pakistan govt notifies 50% duty drawback on exports

Textiles | On 21st Oct 2017

Pakistan govt notifies 50% duty drawback on exports

The Pakistan government has notified the ‘Duty Drawback of Taxes...

Ghana sets up task force to clamp down on textile piracy

Textiles | On 21st Oct 2017

Ghana sets up task force to clamp down on textile piracy

Ghana’s ministry of trade and industry has set up a taskforce to...

Courtesy: Coach

Fashion | On 21st Oct 2017

US company Coach to change name to Tapestry from Oct 31

Coach Inc., a New York-based house of modern luxury accessories and...

Interviews View All

Shawn Honeycutt
Bolger & O'Hearn

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

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Rikesh Mistry

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

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Robert Brunner
Devereux

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

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

October 2017

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
76.8%
No
13.0%
Skip
10.1%

Total Votes: 69

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
62.3%
No
27.5%
Skip
10.1%

Total Votes: 69

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
85.5%
No
10.1%
Skip
4.3%

Total Votes: 69

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
75.4%
No
11.6%
Skip
13.0%

Total Votes: 69


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