India's export of polyester fabrics hit by recession, GST
December 04, 2018 - India
Recession and tax issues faced by India’s man-made fabric (MMF) industry in Surat resulted in fall in export of polyester fabric by 13 per cent to $945 million in April-September compared to $1 billion in the same period last fiscal. Polyester fabric export to the United Arab Emirates (UAE) and Bangladesh fell by 23 per cent and 32 per cent respectively in that period.
The export of Indian MMF during April-September rose by just 1 per cent to $3.1 billion compared to $3 billion during the same period last year, according to the Synthetic and Rayon Export Promotion Council (SRTEPC).
The export of fabric to Bangladesh and UAE has decreased due to external factors, said SRTEPC chairman Narain Aggarwal.
The United States, UAE and Brazil were the leading markets for Indian MMF and polyester fabrics, a leading Indian newspaper reported quoting SRTEPC.
Polyester fabric manufacturing has been adversely affected due to power loom weavers reducing their capacity by almost 60 per cent in the last 12 months due to goods and services tax (GST) and recession.
The production of polyester fabric has come down to almost 2.5 crore metres per day, against the daily average of 4 crore metres, the newspaper reported. (DS)