Frequent changes in Government policies are creating a barrier in long-term planning for Indian textile and apparel companies, which are now seeking some clarity in Government's policy.
The Government's policies regarding export of cotton and imposition of excise duty on branded garments have changed a few times in recent years. Moreover, absence of labeling standards and strong regulatory system is also adding to the vows of textile and garment companies competing in domestic and international markets.
“There is a lot of uncertainty in Government policies and the situation is adversely affecting domestic textile and clothing industries,” Mr. Amit Jain, Director and President of Shingora Textiles Limited, told fibre2fashion.
“If we take recent example, first the Government allowed export of cotton, and then it banned cotton exports, followed by partial and then complete lifting of the ban. Consequently, yarn prices went crazy. In such a situation, it becomes difficult for cotton growers, yarn and fabric manufacturers as well as retailers to make up their mind on a pricing model for their products,” he explains.
“Similarly, there have been frequent changes in excise duty, which has been varying between 5 to 12 percent. The Government needs to bring clarity in its policy and create a level playing field for everyone,” he opines.
Mr. Jain points out that labeling is a very small but integral part of business and the Government must create fixed rules about composition of the material, country of origin, etc. that has to be put on the label.
He says, “The US and European countries have such labeling norms. These labels state a fact and make consumers aware about what they are buying and the country where it is manufactured.”
“We expect the Government to pass a strong law for a regulatory system wherein every product that is manufactured or entered into the country should have a clear composition, country of origin and instruction for care, which all goes in the consumer's favour. This should be put as a strong requirement for products,” he asserts.
So far, the US and the EU have been the favourite destinations for Indian textile and apparel exports. But as Mr. Jain says, “BRICS is the future”.
“The Government should actually start focusing more on trade missions in South America, China and Southeast Asian countries, where it should promote 'Made-in-India' as a brand,” he avers.
“The Government should make efforts to make people in those countries understand that Indian textile and garment products are of very good value and quality. Some really amazing handicraft products are made in India, which are not produced in any other country,” he adds.
Fibre2fashion News Desk - India