Apparel Online India Magazine May 1st Issue 2018 | Page 9
MIND TREE
Apparel exports are going
through a bad phase post-
GST implementation and
reduction in duty drawback.
Many small units are shutting
down as they can’t meet the
cost target of buyers. So labour
availability is as per demand
and there is no shortage of
manpower these days. As far
as automation is concerned,
I must say that in Delhi-NCR
automation really doesn’t work
due to multi-product industry
and impact is negligible on
worker requirements. In some
cases where productivity is high
and efficiency is at its best, one
need to get more and more
business to cut fixed costs. So
there is no impact or change as
such on labour requirement or
availability.
Purshottam Gupta,
CEO, Ekta Fashion, Jaipur
Skilled labour availability
is still an issue for apparel
manufacturing industry. Along
with this, I want to insist that
Indian domestic market is still a
better opportunity compared
to exports, since GST on fabric
and reduction in duty drawback
rates has badly hit exporters.
Due to these reasons, apparel
export is like non-profitable
business. Exporters like us are
really in trouble due to non-
refund of the ITC since July;
and even banks didn’t support
exporters after Nirav Modi
case. Unnecessary documents
NEXT MINDTREE QUESTION
According to latest official data released, Indian apparel exports is in a recessionary zone
with decline of (-) 17.78% for the month of March 2018 against the corresponding month of
March 2017. Further India’s apparel production has shown a decline of (-) 4.7% in the month
of February and a decline of (-) 9.9% for the period April-February 2017-18… Even in this
scenario, we find some companies doing well and expanding. Are you one of them…? If yes,
please share reasons of doing well in this difficult period?
required by banks and waiting
for shipping bill update at
DGFT are also concerning
issues as banks don’t support
until and unless all documents
are as per their system and
their ease as well. Sometimes
even the banks hold export
documents up to 10 days.
All this is against ease of
doing business. Such issues
are against the industry and
have negative impact on
employment generation,
especially at workers’ level.
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www.apparelresources.com | MAY 1-15, 2018 | Apparel Online India
9