Interviews
GEA expectations from Budget 2010
23 Jan '10
5 min read
Mr. Vaid has pointed out that that the withdrawal of certain tax exemptions and fiscal benefits earlier granted by the Ministry of Finance have already adversely affected the export performance and reduced competitiveness of Indian garment exporters in international market. The Garment Exporters are still facing crisis because of worldwide recession and low unit value realization from the overseas market and it would take some more time for the world economy and the apparel trade to revive the worst ever global slowdown which started during 2007-08 and intensified to a crisis in 2008-09.
Mr.Vaid pointed out that GEA has already drawn the attention of the concerned authorities regarding difficulties being faced by Garments Exporters because of global economic slowdown, adverse fiscal and commercial policies of the Government of India and withdrawal of some of the export sops which were earlier granted to exporters.
According to Mr.Vaid each of the concessions that the apparel exporters have been asking for are extremely well-based. Most of the concessions that they are asking for are what their counterparts in the competing economies like Pakistan and China are already getting. The point that should have been given the deserving consideration by the Government was : how to enable our exporters to compete in the world market by providing them with level playing field without which nothing can be helpful to our exporters, who are not only earning foreign exchange, but also creating and maintain a lot of employment and contributing to GDP.
Mr.Vaid pointed out that Indian Economy is passing through a critical phase of uncertainty, transition and restructuring. It continued to be under severe strain because of demand recession and declining trend in industrial production and exports. He pointed out that increasing input cost, tight credit policy and high interest rate, severe liquidity crunch, rigid and outdated labour laws, poor infrastructure and high transaction cost which still goes on increasing, high power cost and frequent power cuts have caused a setback to Industrial Production and Exports. The recent steep hike in fabric prices have also affected the competitive strength and performance of Indian Apparel Industry.
Mr.Rakesh Vaid pointed out that stimulus packages and other steps announced so far have had very negligible impact on the Indian apparel Industry, as they were either release of with held benefits or restoring withdrawn earlier.
Mr.Vaid pointed out that GEA has already drawn the attention of the concerned authorities regarding difficulties being faced by Garments Exporters because of global economic slowdown, adverse fiscal and commercial policies of the Government of India and withdrawal of some of the export sops which were earlier granted to exporters.
According to Mr.Vaid each of the concessions that the apparel exporters have been asking for are extremely well-based. Most of the concessions that they are asking for are what their counterparts in the competing economies like Pakistan and China are already getting. The point that should have been given the deserving consideration by the Government was : how to enable our exporters to compete in the world market by providing them with level playing field without which nothing can be helpful to our exporters, who are not only earning foreign exchange, but also creating and maintain a lot of employment and contributing to GDP.
Mr.Vaid pointed out that Indian Economy is passing through a critical phase of uncertainty, transition and restructuring. It continued to be under severe strain because of demand recession and declining trend in industrial production and exports. He pointed out that increasing input cost, tight credit policy and high interest rate, severe liquidity crunch, rigid and outdated labour laws, poor infrastructure and high transaction cost which still goes on increasing, high power cost and frequent power cuts have caused a setback to Industrial Production and Exports. The recent steep hike in fabric prices have also affected the competitive strength and performance of Indian Apparel Industry.
Mr.Rakesh Vaid pointed out that stimulus packages and other steps announced so far have had very negligible impact on the Indian apparel Industry, as they were either release of with held benefits or restoring withdrawn earlier.
GARMENTS EXPORTERS ASSOCIATION
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