Apparel Exporters From Northern States Bear The Brunt Of Post-GST Regime

Economy

Apparel Exporters From Northern States Bear The Brunt Of Post-GST Regime

Apparel exporters from India’s northern states of Punjab, Haryana and Uttar Pradesh are facing an uphill task owing to the current state of affairs in the economy. The factors contributing to their woe include input cost, delay in GST refund and heavy competition from Bangladesh, China, Vietnam and Pakistan.

The trend in declining apparel exports for these states has continued for the seventh consecutive month in a row. In the overall picture, the country has suffered a 23% decline in apparel exports when examined on an y-o-y comparison between April 2018 and April 2017.

According to a leading exporter in the northern markets, “This sharp decline in apparel business has turned out to be a nightmare for around 200 exporters from Punjab and Haryana. He also pointed out that in the states of Punjab, Haryana and Uttar Pradesh, the input costs were much higher and prohibitive compared to the costs incurred by the Tirupur cluster in the state of Tamil Nadu.

However, there has been hope forthcoming from the textile ministry. According to the statement made to the press by a member of the Apparel Exporters Promotion Council (AEPC), “A delegation of exporters has met both Finance Minister Piyush Goyal and Textile Minister Smriti Irani. We have received an assurance from the ministry that the bureaucrats concerned will be directed to expedite GST refund and also remission of state levies (ROSL). The implementation will take place in a time-bound manner.”

The exporters pointed out that the current state of affairs was a matter of grave concern. Unless the government takes prompt action and provides impetus to boost exports, many of the apparel units will be forced to shut shop in the near future, they added.