‘Government scheme aids industry’
Export of readymade garments has increased 9.25% in April-May this year
compared to the corresponding period last year.
“This is clearly because of the support announced by the government in
March 2019 for garments and made-ups,” said Sanjay K. Jain, chairman,
Confederation of Indian Textile Industry. The Centre announced a Scheme
for Rebate of State and Central Taxes and Levies (RoSCTL) in March.
“April and May are usually lean months for exports. But there has been pick
up during these two months. We are awaiting operationalisation of the
Scheme for Rebate of State and Central Taxes and Levies,” according to
Chandrima Chatterjee, adviser, Apparel Export Promotion Council.
The scheme is expected to be implemented shortly. When it was announced,
garment exporters gained confidence that they will be competitive
internationally as all taxes paid by the exporters would be refunded.
Garment exports grew 14.15 % in May compared with the same period at last
year. Garments worth $1,528.02 million were exported in May this year
compared with $1,338.57 million in May last year, Mr. Jain said. However,
textile exports dropped 1.94 % in May this year compared with last May. “We
are just two months into this financial year. As we go along, export of textiles
will pick up.
“There is a slowdown in China and so, export of yarn and fabric to this market
was down. But, it will pick up in other markets,” said Siddhartha Rajagopal,
executive director, Cotton Textiles Export Promotion Council.
The government is considering extension of the RoSCTL for all textile
products, added Mr. Jain. However, textile imports grew 9.01 % in May this
year compared with last May. India provides free access to garments from
Bangladesh. So, imports are on the rise, he said.
Source: The Hindu, India Wednesday, 19 June 2019