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India facing problem of stagnation in exports: Digjam head
Jun '18
India facing problem of stagnation in exports: Digjam head
India is struggling with the problem of stagnation in exports, while countries like Bangladesh and Vietnam have shown significant growth in apparel exports, said the head of Digjam, a suiting fabric manufacturer. The government must address the issues and implement the suggestions given by various organisations and experts to speed up growth in the sector.

“The government must also ensure timely action to avoid opportunity loss in the fast-moving, competitive global market,” Arvind Kumar Upadhyay, president & COO, Digjam, told Fibre2Fashion.

He stated that the GST aftershock has been felt all across the textile sector. “The textiles sector, the third largest foreign exchange earner after petroleum products and gems & jewellery, has shown only 0.75 per cent growth in 2017-18 on account of a 10.4 per cent decline between May 2017 and January 2018. The main reason has been unresolved issues, including the reduction in the drawback after implementation of GST and capital blockage due to slow refunds, which have adversely affected working capital.”

Speaking about the methods which can be adopted to increase exports, Upadhyay said, “The government can restructure the incentive with increase in slabs on the basis of value addition of the product from raw material to garments. Raw material, especially cotton exports, must be discouraged and more attractive schemes should be introduced for spinning and weaving units, which will result not only in higher foreign earnings, but also lead to more employment.”

The president of Digjam added that the government of India has great vision to secure a higher share in the global textiles trade and to establish the Indian textiles industry as an international competitive producer.

Click here to read the complete interview.

Fibre2Fashion News Desk – India

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