Ludhiana Garment Traders Recorded A Decline Of 40% In Exports
Ludhiana garment traders noted a decline of around 40 per cent in exports this year feeling the pinch of Goods and Services Tax (GST) execution and rate reduction in duty drawback from 7.7 per cent to 2 per cent when compared to last year.
Ludhiana is one of the key apparel manufacturing hubs of India and a house to several small and medium level manufacturers. A drop in sourcing from this destination impacts the overall exports from the country. Due to delay in GST refunds the apparel exporters do not have much working capital in hand. It is being said that exporters are yet to receive the refund even though the shipments have been done.
The traders urged the Government to extend the transitional provision for duty drawback and Rebate of State Levies (ROSL) till the beginning of the new fiscal year in support of the industry.
Experts are of the view that India’s overall garment exports will note a 15 per cent decline to 14 billion US Dollar in the fiscal 2017-18 from 17 billion US Dollar last year.
The exporters also demand a surge in duty drawback rates to compete with rival countries like Bangladesh and Vietnam. Although the GST Council has reduced rates on the various garment and textile products, the textile industry is yet to bounce back.
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