The Hindu Business Line : Apparel industry presses for relief

In the face of consistent fall in textile and clothing exports during the first eight months of the current fiscal, the garment industry has pitched for a slew of supportive steps including duty drawback rates at 14.65 per cent from September 2008, availability of export credit at international rates and tax exemption on export profit for five years.

Addressing a press conference here, the Apparel Export Promotion Council (AEPC) Chairman, Mr Rakesh Vaid, said fresh data from the Council reveals that apparel exports plunged 11.29 per cent in November to $621 million compared with $700 million in the corresponding period in 2007. In the period between April and November 2008, apparel exports show a decline of 0.2 per cent compared with the corresponding months of the previous fiscal.

“Apparel exports are likely to fall 24 per cent, short of the $11.62-billion target and might end up at $8.78 billion, against $9.6 billion the country exported in 2006-07,” he added. He feared that the job losses in the employment-intensive textile industry would be a million.

He further said surveys made in exports hubs of Gurgaon and Oklha towards end-December showed 84 per cent manufacturing units had registered fall in export orders and employment in the range of 20 to 80 per cent.

Stating that competitors like Bangladesh, China, Vietnam and Pakistan had offered several sops to the textile and apparel industry to ease operating pressure on companies and enhance their competitivness, the government has done nothing to help clothing industry in the face of wild fluctuations in rupee-dollar exchange rate. He sought improvement in basic infrastructure and labour laws to revive export potential and the exporters are looking forward to a financially sound stimulus package for the apparel sector as it employs a larger share of women than any other industry.

Mr. Avid also pleaded that fringe benefit tax as applicable to the information technology sector should be extended to garment exporters.

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