Indian textile and apparel trade associations are hopeful of the industry’s growth in FY 2018-19 as the Economic Survey 2018, conducted by Ministry of Finance, has predicted 7-7.5 per cent growth in FY 2018-19 from 6.75% last fiscal.
The Economic Survey 2018, tabled in the Indian Parliament on January 29, 2018, also highlighted that exports will be the major cause of ‘upside potential’ for the country’s economy. Additionally, the country will make a splendid comeback from the struggle of demonetisation and Goods and Services Tax (GST).
Furthermore, trade associations such as Tirupur Exporter’s Association (TEA) have hailed the Economic Survey’s call for an expeditious elimination of embedded export taxes. The trade body’s President, Raja M Shanmugham states that TEA also wants the Government to increase the Rebate of State Levies (ROSL) rates mainly to reimburse the fixed tax. He also highlighted the decline in readymade garment exports in the months of October, November and December last year and certain measures can support the industry.
On the other hand, the newly appointed AEPC (Apparel Export Promotion Council) Chairman, HKL Magu, feels that the Indian Government needs to smoothen the GST and RoSl refund process to back the industry in achieving a double-digit growth in 2018. Delay in these refunds has bottlenecked the benefit of Rs. 6,000 crores package announced in June 2016. In view of the improvement in demand and investment suggested in the Economic Survey, Magu is optimistic about economic growth and the apparel sector, as well.
Even Finance Minister Arun Jaitley is quite bullish on the role of the textile and apparel industry in boosting the country’s economy. “The textile and apparel sector has tremendous potential for growth in exports and employment, particularly, women employment,” he said.
The Government has even introduced some steps to bolster growth and further combat the issues faced by the industry in the Union Budget 2018.