The Apparel Export Promotion Council (AEPC), the official body of Indian apparel exporters, has expressed concerns over the drastic decline in apparel production during April 2017 to January 2018 period in its press statement released recently.
During the 10-month period, the trade association reported a decline of 10.4 per cent in apparel manufacturing. Notably, a gradual decline in apparel production was earlier indicated by the AEPC before the implementation of GST (Goods and Services Tax).
However, a 1.3 per cent growth was reported in apparel production in April 2017 which again saw a 5 per cent decline in the following month; June too witnessed a 3.2 per cent decline while July, August, September, October, November and December recorded a 5.1 per cent, 6.4 per cent, 7.2 per cent, 11 per cent, 13.1 per cent and 13.5 per cent decline, respectively.
“Decline in apparel production has surfaced at a time when exports are already registering a weakening. A 14 per cent decline was reported in exports since January onwards,” said HKL Magu, Chairman AEPC while commenting on fall in production.
The industry is already struggling due to blocked funds which have resulted in the delay in payments to the supplier on time. Suppliers too do not prefer advance as they cannot carry them for an indefinite period which ultimately resulted in a decline in apparel production, as stated.
Delays in RoSL disbursements and IGST refunds all have added to the woes of the industry players. Magu is worried that this situation would be a trouble in meeting the export target of US $ 20 billion.
AEPC has apprised Ministry of Textiles, Ministry of Commerce Drawback Committee, NITI Aaayog, Parliamentary Standing Committee and others about the crisis going on within the industry. It urged policymakers to think of an early solution to the problems to help the industry regain the lost opportunities in becoming a world leader in apparel exports.
