The Indian apparel industry is happy with the Government of India’s decision to discontinue the current currency denominators of Rs.500 and Rs.1000. They feel that the decision will benefit the organized segment in the industry as many unorganized players and firms are working unethically and will face pressure to comply.
Stalwarts also feel that this decision is not going to impact the apparel export in any way, as exports has always been a legally accounted for business. As far as daily transactions, lesser amount or requirement of cash for day to day affairs is concerned, most feel that it is manageable.
“Though implementation of the decision will be difficult in the short run, it is the right step taken by the government to strengthen our economy. Especially in the textile sector, there are numerous opportunities for tax evasion, and demonetizing of high denomination notes will help in maintaining transparency in the financial transactions,” KS Selvaraju, secretary general of The Southern India Mills’ Association (SIMA) said.
“We welcome this move as it is in the benefit of the country, additionally the apparel export business will not be impacted as it fulfills all the required processes and proper documentations as laid out by the law,” Ashok G Rajani, chairman of Apparel Export Promotion Council (AEPC) said.
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