Apparel sector seeks immediate steps to boost dwindling exports

Vijay C Roy

Tribune News Service

Chandigarh, March 22

As labour-intensive apparel sector is witnessing a continuous decline in exports since October 2017, exporters have sought government intervention, including resumption of duty drawback rates, faster GST refunds and measures to boost exports. 

The Indian apparel industry saw declining numbers for overall exports in October, November, December 2017, January and February 2018 — a fall of 41%, 14%, 13%, 14% and 14% year-on-year, respectively, mainly due to the impact of GST and discontinuation of certain export incentives.

Apparel exports in the April-February period (2017-18) were to the tune of Rs 97,990.40 crore, a fall of 6.29% as compared to Rs 1,04,572.90 crore in the same period previous fiscal.

As compared to national average, the impact in Punjab, Haryana and Uttar Pradesh is in double digits as the input costs are higher. 

Harish Dua, president, Apparel Exporter Organisation, said the exports from Punjab may be down by around 30%. “We are far away from ports, so it leads to high input costs. Therefore, units situated in Punjab are less competitive than those in South. There are around 200 apparel units in Punjab and in the past five months, they have decreased their work force by 25-30% as export orders have dried up,” he added.