Unhappy with Finance Minister Pranab Mukherjee’s proposal to levy a mandatory 10 per cent excise duty on branded clothing, garment retailers, including Pantaloons, Shoppers Stop, Westside, Manyavar, Madura Garments, Provogue, Pepe and Killer, have decided to remain shut on March 7.
The additional excise duty levied on branded garments is likely to be pushed to the customer, which could lead to price appreciation in branded garments.
Ravi Modi, founder, Manyavar, said, “The excise duty has to be removed at any cost; already the industry has suffered from an absurd increase in cotton prices in the last 12 months and an abnormal increase in the production cost due to high inflation. Any further increase in cost would destroy the industry.”
On the issue of foreign direct investment, he said, “The government should certainly have announced FDI in retail to help the industry grow with the much-needed capital infusion.”
This, he said, would also have brought down inflation, thus, helping the aam aadmi, and would have given better prices of agricultural produce to farmers.
– IndiaRetailing Bureau