Basic customs duty has been hiked ranging from 10 to 20 per cent on more than 50 textile and apparel products by the Government to protect textile industry and employment. Now, the textile products which are being imported from countries like China, Bangladesh, Vietnam, Cambodia and Sri Lanka will face the heat. Hike in import duty would impact 24 categories of knitted apparel, 24 of woven apparel, 10 of carpet, 6 of non-wovens, 3 of laminated fabric, 2 of knitted fabric, 2 of woven fabric, 2 of made-ups, besides 3 other categories. Various trade bodies like Tirupur Exporters’ Association( TEA) and Confederation of Indian Textile Industry( CITI) have welcomed this decision which came into effect from 16 July 2018. |
Textile and apparel products worth US $ 7 billion were imported by India in 2017-18. The imports have grown from US $ 6 billion in 2016-17 at a rate of 16 per cent. Leading India retail stores are also importing from Bangladesh and other countries due to availability of cheaper products. The positive move taken by the Government has brought a big relief to the already struggling garment and carpet manufacturers, who have been facing the heat post-GST.
CITI Chairman Sanjay Jain thanked the Government for addressing the issue of rising imports of textile and apparel goods. However, he is still sceptical about imports from Bangladesh as there is full exemption of basic customs duty, and hence it is a gateway for Chinese fabric entering India dutyfree
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.“ I hope that Government would address the unresolved issues of the textile sector to make it globally competitive,” he said.
Raja M Shanmugham, President, TEA said that of late, the textile products import from countries like China, Bangladesh, Vietnam, Cambodia and Sri Lanka have been significantly increased with CAGR of 17 per cent in five years. Last year itself, the apparel imports have increased from Rs. 3,994 crore in 2016-17 to Rs. 4,983 crore in 2017-18. He specifically pointed out that the leading retail stores in our country have also started importing garments from Bangladesh and other countries, as it is cheaper compared to garments produced from our country.
He also added that threat for Indian apparel industry has
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emerged from China by setting up their factories in our border countries to take advantages of abundant availability of labour, low wages and also customs duty exemption available to these countries in EU, Canada etc. He specifically noted that under agreement on South Asian Free Trade Area( SAFTA), some specified garment items imported into India from Bangladesh are also exempted.
On the other hand, hike in import duty would cost a little more to the pockets of those who love to wear international brands. Burberry, Chanel, Fendi and Gucci will be among the major foreign brands to be hit the most as they sell garments in India that are made in other manufacturing hubs.
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Persistent heavy rains for four consecutive days in the financial capital of India, Mumbai, have caused great loss to the industries in the city, besides bringing normal life to a halt totally. The textile and garment business in the nearby industrial cities like Bhiwandi have also been greatly affected.
Mumbai has been receiving incessant rains, with July already recording average rainfall of 840.7 mm. Though there is no major or long-term impact of the rainfall, many factories and offices remained closed for three-four days. Even those units that were operational saw heavy absenteeism. Powerlooms units in Raoji Nagar and Aslam Nagar of Bhiwandi saw waterlogging
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at many places, resulting in shut down of work for nearly two days.
Permeshwar Exports, which has its factory as well as office in Lower Parel area, witnessed 50 per cent absenteeism in the last three days.“ Our staffs come from areas like Virar, Vasai and Badlapur; and since local trains were badly hit, they had a valid reason to be absent. Yesterday, logistic and courier services were also unavailable, so it affected our working,” informed Ajay Sadh, CEO of the company, which exports women’ s dresses and accessories to Germany, France, and some other countries. As some of the manufacturing of the company is outsourced, so it had less impact. However in the case of companies that have
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in-house manufacturing in the nearby areas, they were affected badly. Chintan V Daga, Director, Rishab International informed,“ Dyeing, washing, and printing were stopped for four days, transportation was also affected. So our work got delayed but as it |
is a natural calamity and nobody can do anything, the buyers will support us for this minor delay.” Having its operation in Kalachowki area of Mumbai, the company exports its products to the US and Europe.
Rain is an annual affair in Mumbai and Mumbaikars are used to such conditions and manage their work in advance. Rahul Mehta, President, Clothing Manufacturers Association of India( CMAI) feels that this impact is minimal.“ I don’ t think that heavy rains will have any major impact on garment business. There may be few exceptional cases like having LC’ s expiry in these days, otherwise, industry manages the situation well,” he maintained.
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