As per the IIP figures, 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. In the months of August, September, October, November and December the industry had recorded a decline of 6.4 per cent, 7.2 per cent, 11 per cent, 13.1 per cent and 13.5 per cent respectively. In January, the apparel production recorded a dip of 10.7 per cent.
“Apparel manufacturing is clearly in recession as the latest production figures shows a decline of 4.7 per cent. Apparel production has been down for the tenth straight month which indicates towards a shrinkage in the industry,” Apparel Export Promotion Council (AEPC) chairman HKL Magu said in a press release.
“Unresolved issues like the reduction in the duty drawback and RoSL after the imposition of GST, capital blockage due to slow GST refunds and uncertainties on future of export subsidies have affected the sentiments of the industry. The global demand positions are good and the industry is keen to take up more orders but cost disadvantages is affecting India’s relative position as a sourcing destination,” Magu added.
AEPC has been engaging with the policy makers for an early resolution of the issues. (RKS)
Fibre2Fashion News Desk – India