Beat
INDIA
POLICY
Indian government announces new duty drawback rates for garments
The Government of India has
announced the new duty drawback
rates to be effective from October 1,
2017 (post-transition period ending
September 30, 2017). The new All
Industry Rates (AIR) for cotton
garments is 2 per cent as compared
to the 7.7 per cent drawback available
earlier.
The duty drawback rate on garments
of blend containing cotton and man-
made fibre (MMF) will be 2.50 per cent
beginning next month compared to the
existing 9.5 per cent. Likewise, the rate
on garments made of MMF will also be
2.50 per cent compared to 9.8 per cent
at present.
Clothing items (under HS codes
61 and 62) made of silk (other than
containing Noil silk) will be subject to a
rate of 4.80 per cent as compared to the
earlier 7.6 per cent. The duty drawback
rate on woollen apparel will also come
down from 8.7 per cent to 3.50 per cent.
The duty drawback rate on garment
of blend containing wool and MMF will
be 3 per cent from October 1, whereas
the rate on all other garments will be 2
per cent.
This low rate is unexpected at a
time when the industry is facing
continuous decline in exports due to
global conditions, rupee overvaluation
and uncertainties under the GST
regime, Apparel Export Promotion
Council (AEPC) said. The duty drawback
was one of the key policy support
measures towards lifting industry’s cost
competitiveness. However, due to the
steep drop in the drawback support over
7,000 small and medium enterprises
in the apparel export sector will be
crippled, creating an adverse impact on
the employment being provided to over
12 million people by this sector, AEPC
said in a press release.
Tiruppur Exporters Association
(TEA) also termed the reduction in
duty drawback rate as death knell to
Tiruppur garment export sector. TEA
president Raja M Shanmugham said
once buyers go out of the country due
to higher price it will be very difficult
to bring them back to our country. He
apprehended that the latest step might
lead to more job losses since 80 per
cent of the garment exporting units are
in MSME sector.
Gujarat government announces Garments & Apparel Policy 2017
With an aim to make full use of
cotton grown in the state, the Gujarat
government has announced Garments
& Apparel Policy 2017. Under the
policy, garment unit owners would get
incentive for generating employment
in the form of subsidy in wages. While
the subsidy amount would be ` 3,500
per month for male workers, it would
be ` 4,000 per month for female workers.
“The decision is taken to encourage
new investments in garment making.
The state has an advantage of being
16 | FIBRE 2 FASHION NOVEMBER 2017
largest cotton producer. So far, we
supplied cotton to other states, it is time
we encourage our entrepreneurs to
invest in garmenting,” said Gujarat chief
minister Vijay Rupani while making the
announcement at a press meet.
“Our aim is to provide employment
to women and create investment
opportunities in the complete value
chain from cotton to fabric to clothing,”
Rupani said.
He also announced setting up
of 16 new industrial estates under
the Gujarat Industrial Development
Corporation (GIDC). “These GIDCs will
unlock the growth in remote areas and
SMEs. These GIDCs, spread across
2,400 hectares in 16 villages, will have
the potential to accommodate about
15,000 factories. The total estimated
employment generation is about
100,000.”
TRADE
India’s garment exports up 24.93%
in September 2017
The exports of readymade garments
from India in September 2017 was
recorded at ` 10,707 crore, up 24.93 per
cent over exports of ` 8,570 crore in the
same month of previous year, according
to the trade data compiled by Indian
Texpreneurs Federation (ITF). The rise
in exports is a boost to the domestic
manufacturing value chain of textiles.
The growth in apparel exports
was observed after a decline for two
months. The robust retail sales in the
festive season will also increase the
domestic market demand in the entire
manufacturing value chain, according
to ITF analysis.
During the month, exports of man-
made fibre (MMF) textiles, including
yarn, fabrics, and made-ups, also
witnessed a jump of 20.49 per cent.
The exports totalled ` 2,996 crore as
against the exports of ` 2,487 crore in
September 2016.
For the reported period, the exports
of cotton textiles were worth ` 5,911
crore, up 11.23 per cent as compared to
` 5,315 crore for the same period in the
previous year.
HOME TEXTILES
Sutlej Textiles adds American Silk
Mills to its portfolio
Sutlej Textiles and Industries Ltd (STIL)
has announced the acquisition of
design, sales and distribution business
and brand of American Silk Mills (ASM)
LLC based at Plains, Pennsylvania.
The acquisition of American boutique
designer and distributor of residential
and contract furnishing textiles will
add strength to Sutlej’s home textiles
portfolio.
However, ASM will continue to
design, develop and market its products
under the brand name of American
Silk Mills thus furthering its legacy as a
leader in this field for over 120 years.
Pic courtesy: American Silk Mills