Textile industry calls for imposing safeguard measures against cheap imports
The Dollar Business Bureau Confederation of Indian Textile Industry (CITI), an apex textile industry body, on Monday called for imposing protection measures in order to prevent the routing of cheap fabrics from countries such as China through Sri Lanka and Bangladesh, where India has free trade agreements. The garment industry in India will face tough competition from countries like Bangladesh as the garments imported from these countries are cheaper as the production cost is quite low compared to India, CITI said in a statement. As per the recent data released by the Export Promotion Bureau of Bangladesh, India’s garments import from Bangladesh has touched $87.4 million during the period July to November this year, witnessing a steep rise of 56% compared to $55.92 ...
Industry welcomes cut in GST rates on textile job work
Aamir H Kaki The textile industry has welcomed the Government’s move to cut the Goods and Services Tax (GST) on job work or the third-party services, but said some more leniency in cost is needed. In its meeting last week, the GST Council, chaired by Finance Minister Arun Jaitley consisting of representatives from all the states, had taken the decision to bring down the tax on all the job works such as weaving, knitting, cutting, and embroidery in the textile sector at from 18% to 5%. The 5% rate will be applied on job work in apparel, carpets and shawls. “We welcome this move of the government but it would be better if it is zero percent,” P M Shah, President, Southern Gujarat Chamber of Commerce and Industry (SGCCI) told The Dollar Business. “The thing is that the ...
Gujarat textile industry demands heavy import duty on Chinese fabrics
The Dollar Business Bureau Textile industry of Gujarat is demanding imposition of heavy duty on the imports of fabrics from China in order to protect small and medium enterprises (SMEs) of the State. Apex trade body Southern Gujarat Chamber of Commerce and Industry (SGCCI) and Pandesara Weavers' Coooperative Society Ltd has submitted a representation to the Ministry of Commerce and to the Confederation of Indian Industries (CII) demanding an for imposition of import duty on the Chinese fabrics to safeguard the SMEs in Surat. SGCCI has raised apprehensions about the heavily under-invoiced fabrics import from China and said that the import has touched over Rs.5,500 crore in the past one year, but it could be more than Rs.10,000 crore. P M Shah, President, SGCCI said, “The Government of China provides ...
Govt to set up expert panel to better facilitate carpet exports
The Dollar Business Bureau The Indian government will constitute a carpet export panel consisting of textile experts from the textile department and from the Export Promotion Council/Trade to ensure expeditious examination and speedier disbursal of drawback on carpets. The Directorate General of Export Promotion (DGEP) said these experts will complete a market inquiry within fifteen days, failing which export benefits to the exporters should be extended. The government said a post-facto action may be taken in view of results of inquiry and export benefits be held beyond 15 days only with the written approval of the Commissioner. It also underlined that exports will not be stopped. The board “had also provided a list of members of Carpet Export Promotion Council (CEPC) whose assistance can be taken when Customs ...
Govt to support Tangaliya weavers in purchasing looms
The Dollar Business Bureau With an ambitious vision to support and strengthen the domestic textile industry, the Government would facilitate Tangaliya weavers on their looms purchases, by extending them an assistance amounting to 90% of the price of looms. Interacting with Tangaliya weavers in Surendranagar district of Gujarat, Textiles Minister Smriti Zubin Irani said the government will continue to favour Tangaliya weavers’ interest and will form a special association of Tangaliya workers to oversee their developmental goals. Appreciating Tangaliya embroidery, Irani said Tangaliya weavers’ exquisite handloom work should be promoted on an international scale, and requested the district administration to make proper arrangements. She also appealed to fashion designers to use and encourage the Tangaliya artwork for their fashionable garments. The Minister also mentioned Pradhan ...
AEPC confident that apparel exports could cross $30 bn in next three years
The Dollar Business Bureau The government’s future-oriented initiatives to modernise the country’s textile sector will help push apparel exports to more than $30 billion in the next three years, industry body AEPC said. Referring to the government’s Rs.6,000 cr special package announced in June for the textiles sector, Apparel Export Promotion Council said this move, along with innovative designs prowess will bring about a paradigm change for the industry. "We have an ambitious target for export and job creation in the next three years. The industry is poised to grow in 2017. I am sure we will not only achieve the $30 billion mark in next three years for apparel exports, but have the potential of exceeding the expectation," AEPC Chairman Ashok Rajani said. India’s apparel ...
Textile industry sees no threat from Brexit
The Dollar Business Bureau Brexit may impact some Indian companies, but domestic textile industry doesn’t see any direct threat from it, according to India ITME Society. "England is not a big buyer of textile machinery. Textile manufacturing moved away from England long ago to China. So we don't see much impact on Indian textile machinery manufacturing," said Sanjiv Lathia, Chairman of International Textile Machinery Exhibitions (ITME society). India exported textile items to the UK worth $0.28 billion and to the USA worth $2.30 billion in 2015. The government has recently announced a new textile policy, in which it plans to generate 1 crore jobs till 2019, while boosting manufacturing as well as exports. India’s overall textile exports stood at about $4.62 billion in 2015 compared to around $4.61 ...
Package for textiles to benefit the local industry more
Aamir H Kaki Commenting on the government’s approval for a special package for Textile and Apparel sector, Kripabar Baruah, Deputy Director, The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC), said that this is majorly going to benefit the domestic garments industry compared to exports. “The garment makers who are importing fabrics will be given additional duty drawbacks of 5 percent by the government, to promote manufacturing in the country. They are allowed to import almost free of cost under the Advance Authorisation Scheme,” Baruah told The Dollar Business. He said that the package will definitely generate employment, but mainly in the domestic manufacturing sector, not in the export sector. “The exports in this scenario are volatile and the profit margin is thin. Therefore, ...
