>>
Rewind 2021 and prospects for 2022 Rewind 2021 and prospects for 2022
Home / Knowledge / News / Apparel/Garments / Concern over drastic decline in apparel production: AEPC
Concern over drastic decline in apparel production: AEPC
13
Mar '18
Concern over drastic decline in apparel production: AEPC
India’s apparel production has shown a decline of 10.4 per cent for the ten-month period Apr-Jan 2017-18 due to the consistent decline since May 2017, as per the latest IIP figures. Apparel Export Promotion Council (AEPC) has indicated earlier about the gradual decline in the production on account of the issues that arose after the implementation of GST.

IIP figures show that there has been a month to month decline in apparel productivity. From a positive growth of 1.3 per cent in April 2017, May saw a fall of 5 per cent. In June, the decline was 3.2 per cent while in July, it was 5.1 per cent. August, September, October, November and December recorded 6.4 per cent, 7.2 per cent, 11 per cent, 13.1 per cent and 13.5 per cent dip respectively.

“For the period Apr-Jan 2017-18, there has been a drastic decline of 10.4 per cent in apparel production. This has come at a time when exports are already registering a decline. Exports registered a decline of 14 per cent in January,” AEPC chairman HKL Magu said in a statement.

“The industry is suffering as its funds are blocked and manufacturers are unable to pay suppliers on time. Suppliers don’t give advance, since they can’t carry them forward for an indefinite period. This has resulted in the decline in apparel production. The biggest deterrent to the Industry’s sentiments has been the severe capital blockage due to the dual constraint of delays in RoSL disbursements and IGST refunds. Until the refunds start flowing, things will not improve. The dip in production will not allow us to meet our export target of $20 billion,” he added.

AEPC had indicated earlier about the gradual decline in the production on account of the issues that arose after the implementation of GST. It has been engaging with the policymakers for an early resolution of the issues hampering the apparel industry post GST roll out, and has made several presentations to the ministry of textiles, ministry of commerce Drawback Committee, NITI Aaayog, Parliamentary Standing Committee etc.

In its last meeting with minister of state for MSMEs, Giriraj Singh, an AEPC delegation led by Magu informed the minister that if the capital blockage continues and the cost competitiveness of the industry is not restored, the slippage in exports will continue, with long term adverse impact on India’s positioning in this sector.

Prior to that, AEPC had made a request to the ministry of commerce and industry to urgently release the total ITC Credit and IGST of Rs 4,097 crore which is blocked till date. AEPC had also informed the ministry of commerce that on account of new taxes there is a shortfall of around 5 per cent under GST and therefore several blocked and embedded taxes may be refunded through higher drawback and RoSL rates, along with refund of GST input tax credit (ITC).

AEPC has requested for an early resolution of the issues troubling the industry, so that it can regain the lost opportunities in becoming a world leader in apparel exports. (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Textiles | On 28th Jan 2022

Real US GDP rose at 6.9% annual rate in Q4 2021: BEA

Real US gross domestic product (GDP) increased at an annual rate of...

Pic: Shutterstock

Apparel/Garments | On 28th Jan 2022

Egypt’s garment exports rise by 41% to $2.49 bn in 2021 over 2020

The Egyptian apparel sector’s exports rose by 41 per cent in 2021 to...

Pic: Prasit Rodphan | Dreamstime.com

Textiles | On 28th Jan 2022

Cambodia-Vietnam trade volume touches $9.3 bn in 2021

Cambodia-Vietnam trade volume touched $9.3 billion last year—a rise...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Marry with brand ethos

Florian Heubrandner, Lenzing AG

Florian Heubrandner
Lenzing AG

Cannot see the world breaking away from cotton & polyester

Textile Industry, Head honchos

Textile Industry
Head honchos

Strongly believe in 'people first' policy.

Rajesh Masand,

Rajesh Masand

Established in 1963, the Clothing Manufacturers Association of India, or...

Erwin Devloo,

Erwin Devloo

The Picanol Group is a diversified industrial group active worldwide in...

Kishina Daruka and Mishika Daruka,

Kishina Daruka and Mishika Daruka

Headquartered in Kolkata, India, sustainable clothing brand Ora was...

Silke Brand-Kirsch, Glatfelter

Silke Brand-Kirsch
Glatfelter

Glatfelter is a leading global supplier of engineered materials. <b>Silke...

Shlomzion Chen, Seevix

Shlomzion Chen
Seevix

Seevix Material Sciences Ltd, which develops and manufactures synthetic...

Michaela Griggs & Peggy Schulz, Barco Uniforms

Michaela Griggs & Peggy Schulz
Barco Uniforms

Founded in 1929, Barco Uniforms started as an apparel company for beauty...

Carmen Emanuela Popa, Label - Carmen Emanuela Popa

Carmen Emanuela Popa
Label - Carmen Emanuela Popa

<b>Carmen Emanuela Popa,</b> a Romanian fashion designer, is known for her ...

Reynu Taandon, Label Reynu Taandon + Nikhita

Reynu Taandon
Label Reynu Taandon + Nikhita

Renowned womenswear designer <b>Reynu Taandon </b>has been serving the...

Raghavendra Rathore, Label Raghavendra Rathore Jodhpur

Raghavendra Rathore
Label Raghavendra Rathore Jodhpur

Being one of the first designers to use the "Brand India" positioning for...

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

Leave your Comments

ESTEEMED CLIENTS

Chori Company Limited
Phong Phu international JSC (PPJ)
Esprit Europe Services GmbH
MAS Active / MAS Kreeda / MAS Bodyline
Reiter India Private Limited
Alix Partners
John Varvatos
Boardriders Asia Sourcing Limited
SHAHI Exports Pvt Ltd
PVH Corporation
Desigual - ABASIC, S.A.
THE BOMBAY DYEING ;& MFG.CO. LTD
Recron Polyester from Reliance Industries Limited
Decathlon
Walmart
Huntsman (Singapore) Pte Ltd
Lacoste (Wanchai)
Green Fibre
Rosset ;& Cia Limited
LC Waikiki
Eastman Chemical Company
Aquarelle Clothing Limited
Seasalt Limited
BIMBA ;& LOLA SL
Lisa S.P.A.
Gokaldas Exports Limited
Page Industries Limited (Bangalore)
Permoda(Koaj/Armi/Pronto/Bkul)
Lululemon Athletica Inc
BIANCA
KIABI
Deckers Outdoor (Guangzhou) Consultant Co., LTD.
Helly Hansen Far East Ltd
Hela Clothing Pvt Ltd
Asos
Gatsby Africa
Rayonese Textile Inc., Division de Culp Inc.
Gap International Sourcing Limited
Etam Group Strategy Hong Kong Limited
NITI Aayog
Cat Tuong Real Estate Group Joint Stock Company
Sportswear Company Spa
Truetzschler India Private Limited
Lenzing Aktiengesellschaft
Splash
J ;& P Coats
H;&M Hennes ;& Mauritz (Far East) Ltd
Bluestem Global Sourcing Limited
BIRLA CENTURY A DIVISION OF CENTURY TEXTILES AND INDUSTRIES
International Textile Manufacturers Federation
SYNERGIES HONG KONG LIMITED
Aramark Uniform ;& Career Apparel, LLC
Puma
T.T. Limited
Target Corporation (MN)
IKEA of Sweden AB
Varner AS Retail
Calvin Klein
C;&A Sourcing International Ltd
G-Star Raw C.V.
Tory Burch Hong Kong Ltd
Babyshop
Landmark Group
Alison Hayes Romania
Tommy Hilfiger
Vianney Textil Hogar S.A. De C.V.
Grasim Industries Limited
Abit
Restoque S.A.
Maceton Limited
Brandix Lanka Limited
TESCO INTERNATIONAL SOURCING LIMITED
Tchibo GmbH
HYOSUNG CORPORATION INDIA PRIVATE LIMITED
Chico’ FAS
Guess Europe Sagl,
Sainsbury's Argos Asia Limited
Midas Clothing Limited
Under Armour Global Sourcing Ltd
Benetton Group
Lifestyle
OVS Hong Kong Sourcing Ltd.
Gloria Jeans
Arvind Limited
The LYCRA Company Singapore  Pte. Ltd
The Top Form Brassiere Manufacturing Company Limited
Vardhman Textile Ltd
IDH – The Sustainable Trade Initiative
Groz-Beckert East Asia LLP
KAS Direct Sourcing

January 2022

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


Advanced Search