Apparel Online India Magazine April 1st Issue 2019 | Page 8

MIND TREE
Q-and-A
Indian Government has announced three major decisions like new scheme for Rebate of
State and Central Taxes and Levies on the export of garments and made-ups; scheme for
development of knitting knitwear sector; and reduction in Hank Yarn Obligation (HYO) from
40 per cent to 30 per cent of the total weaving yarn produced for domestic consumption.
Even the Tamil Nadu Govt. has announced its new integrated textile policy. How are these
decisions going to impact you as a part of the industry? With these announcements, how
much competitive are you going to be?
Vivek Saxena, Director,
Moissanite Apparels,
Noida
No doubt, all the decisions
taken by the Government in the
recent one or two months have
been really good. And I hope
that these announcements are
not just political… all should
be executed properly and
timely. Nobody knows how
the new Government will act
on such policies… What will
be the priorities of the new
Government? At that time, we
will have high season also.
As far as positivity or growth
is concerned due to these
issues, I must say that it is too
early to say about the real
impact. As of now, there is
nothing like sentiments are
up or subdued as we are
passing through low season.
So currently for us, it is just
about waiting and watching.
But for sure, the Government
deserves appreciation for these
announcements.
Sushil Aggarwal,
MD, Eves Fashion, Delhi
We have to see these
announcements or things from
an individual perspective like
Tirupur, known for comparatively
volume business, which will
be gaining from the special
package for the knitwear
sector and integrated textile
policy for Tamil Nadu. There
are many vertical integrated
companies, so they will be
more than benefited from Hank
Yarn Obligation… Now coming
to Delhi-NCR, we are mainly
into value-added garments
and small orders. Here wages
are already maximum and
overheads which are not in
our control like fixed electricity
charges, logistic expenditure,
fees of CA, have increased a
lot in recent years. And further
they seem to be growing even
higher. In all these conditions,
little support from Government
can’t bring in more positivity,
at least for Delhi-NCR-based
SMEs like us.
Mohit Jain, Proprietor,
RNR International,
Gurgaon
Whatever points you have
mentioned are majorly still
on paper. Big exporters will
definitely get benefits from all
these, but SMEs like us will not
get much as usual. Talking in
general about all the schemes,
there is still so much corruption
that small companies like us
have to take the support of
agents, touts or experts. And
indeed, we don’t get any major
8 Apparel Online India | APRIL 1-15, 2019 | www.apparelresources.com
benefit irrespective of any
schemes or announcement.
Nakul Kapahi, Director,
Ravels Apparels, Gurgaon
Yes, more or less, some benefits
must be there, but so far, it is too
early to say about these benefits
or competitiveness, as apart
from these announcements,
there are so many things which
will have an overall impact.
Business is currently okay and
there is hope that it will improve
further. Whatever, any support
in the form of positive decision
is welcome.
Deepak Chandra,
President, Minqo Impex,
Mumbai
The first point that you raised is
the Rebate of State and Central
Taxes and Levies on the export
of garments and made-ups… So
far, we used to get 1.8 per cent
duty drawback and somewhere
around 2.2 per cent RoSL.
Rates under the new scheme
are not informed till now but
I don’t think that it will be as
per our expectation. Even if
we get somewhere a total of
around 5.5 per cent, currency
fluctuation will be killing this little
relief. Just a few days back, I
booked an order, and at that
time, Indian Rupee was 71.70
against US $ 1 but now it is 69.85
against the same, so literally,
I don’t have any gain. Can’t
our Government fix currency,
at least for exporters, and for
a few months? After all such
kinds of system is there in China.
Hedging is not a good option
for exporters like us. The second
thing is the delay in RoSL.
We get duty drawback just
15-20 days after completing all
processes while refund under
RoSL is delayed for long. Why it
is so? Things definitely need to
improve on this front.
Sanjeev Swarup,
Director, Frolic Exports,
Greater Noida
Our Government is only making
announcements, but not
implementing them. We are
doing business here, but finding
it really hard to survive with such
negligible support. At every
stage, there are people asking
for money. If it goes on like this,
then we will have to surely shut
the factory and have to do
something else. ‘Make in India’
will remain a distant dream
unless the Indian Government
carries out with vigorous labour
reforms. Even Bangladesh has
a proper labour law. India has
all the capabilities to become
the No.1 exporter in denim,