Home / Knowledge / News / Textiles / Denim industry urges Centre to hike duty drawback rates
Denim industry urges Centre to hike duty drawback rates
29
Nov '16
Denim manufacturers are urging the Central government to announce immediate enhancement in the present duty drawback rates and extend some more benefits under focus product scheme. The Indian denim industry has experienced a shutdown of over 50 per cent of its capacity post government’s move to demonetise Rs 500 and Rs 1,000 denomination notes.

Industry experts are also requesting the government to focus on market scheme so that the mills can competitively try to shift production for export market. The denim fabric sold in the domestic trade needs to be cut, sewn and washed before it can be sold in the market. These upstream activities are majorly done in the unorganised sectors located at the small-scale industries of Gandhinagar and Tank Road in Delhi, Ulhasnagar in Mumbai and Bellary near Bangalore. These hubs mainly deal in cash, and have shut down due to cash crunch. This has affected the selling of 85 per cent of the fabric in the domestic market.

Since the upstream activities of garment sewing and washing in these small-scale industries will take a while to work smoothly with the formal banking system, industry experts fear that short-term recovery of market will not occur in near future. This has also led to shutdown of denim mills and loss of jobs in this industry.

Over the last decade, the Indian denim industry has been growing at a healthy rate of 15 per cent CAGR. Currently, the industry has an annual installed capacity of 1.4 billion metres which is the world’s second largest, after China. Sales turnover of the industry, which gives direct employment to approximately 4,00,000 workers besides providing indirect employment to many, is estimated to be around Rs 15,000 crore. (RR)

Fibre2Fashion News Desk – India


Interviews View All

Top executives, Textile industry

Top executives
Textile industry

The budget will give major impetus to textile and apparel consumption

DK Sharma, Velocity Apparelz

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Top executives, Textile industry, India

Top executives
Textile industry, India

Such fairs are a must for industry to showcase new innovations

Sandip Bhojani, Manthan Patel,

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Hardik Sanghvi,

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Vasudevan LK,

Vasudevan LK

Epson is a world leader in digital imaging and printing solutions....

Kazuaki Yazawa, Purdue University

Kazuaki Yazawa
Purdue University

Scientist <b>Kazuaki Yazawa</b> has developed thermoelectric semiconductor ...

Karl Zelik, Vanderbilt University

Karl Zelik
Vanderbilt University

A team of engineers at the Vanderbilt University has designed a smart...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, the Association of the Nonwoven Fabrics Industry, serves hundreds of ...

Jay Ramrakhiani, Occasions Elegance Wear

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Igor Chapurin, Chapurin

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Pranav Mishra, Huemn

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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


November 2019

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

Follow us on instagram

Follow

Follow Fibre2Fashion On


Advanced Search