Home / Knowledge / News / Policy / Indian textile sector's cautious optimism on govt decision
Indian textile sector's cautious optimism on govt decision
Nov '17
The Indian textile industry has expressed cautious optimism on the government decision to raise the incentive under the Merchandise Exports from India Scheme (MEIS) for readymade garments and made-ups and notify post-goods and services tax (GST) rates on their exports under the scheme for remission of state levies, saying it will address declining exports.

The textile industry organisations include the Confederation of Indian Textile Industry (CITI), Tiruppur Exporters’ Association (TEA) and the Coimbatore-based Southern India Mills’ Association (SIMA).

The commerce ministry recently enhanced the export incentives to 4 per cent from 2 per cent for the garment and made up sectors under MEIS. Similarly, under the scheme for remission of state levies (RoSL), the government has increased the refund of state levies by an average of 0.5 per cent.

However, the notified drawback and RoSL rates are only interim relief as these benefits have not considered various embedded taxes and inverted duty on fabric stage, according to SIMA.

Both SIMA chairman P Nataraj and TEA president Raja M Shanmugham urged the government in separate press releases to announce the new duty drawback rates without further delay with effect from October 1 to minimise the financial stress of exporters.

Several garment and made-ups exporting units have already curtailed their production to the tune of 20-30 per cent rendering several lakhs jobless, Nataraj said.

Nataraj is hopeful that the government would consider the remaining embedded taxes while announcing the revised duty drawback rates and ensure the same level of competitiveness that the industry had under special export garment package to enable exporters to retain existing customers and remain competitive in the global market.

Noting that the exports of readymade garments had declined by 39 per cent to $829 million in October 2017, CITI chairman Sanjay K Jain said yarn and fabric, which have also witnessed a steep fall in exports, have not been given any relief. Even in garments and made-ups, the overall incentives and refund of duties on exports is still about 3 per cent less than pre-GST levels, he added. (DS)

Fibre2Fashion News Desk – India

Must ReadView All

India's Kay Ventures aims to turn Karur into knitwear hub

Apparel/Garments | On 20th Aug 2018

India's Kay Ventures aims to turn Karur into knitwear hub

India’s Kay Ventures has teamed up with Hydra Micro Business...

Uzbekistan-China meeting discusses textile cooperation

Textiles | On 20th Aug 2018

Uzbekistan-China meeting discusses textile cooperation

A meeting of the Uzbek-Chinese business forum on cooperation in the...

Moldova wooing Indian investors in textiles, agriculture

Textiles | On 20th Aug 2018

Moldova wooing Indian investors in textiles, agriculture

Moldova is wooing Indian investors in textiles, agriculture and a few ...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Indian fashion industry

Organic the first choice of any environment-conscious person

Yash Jain & Sanjeev Jain

Divyam Export, launched about 30 years ago, exports to 15 countries,...

Abhishek Pachauri

Reckon Industries is into manufacturing of textile process house machines, ...

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

S Ziya Gumuser

Turkish nonwoven manufacturer Teknomelt has been around for only seven...

Justin Chan & Shyam Gollakota
University of Washington

A fabric that can store data without any electronics or batteries has been ...

Mark Brill
Birmingham City University (BCU)

<div>A technological breakthrough could see people getting messages about...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Divvya and Nidhhi Gambhir

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

August 2018

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

news category

Related Categories:

Advanced Search