India’s garment exports are expected to register a 15-18 per cent growth in FY 18 as against US $17 billion registered last year, a senior government official said here.
“We have clocked 18 per cent growth in garment exports since January 2017 and we hope that similar trend may continue for remaining period this year. Last year our garment exports stood at US $17 billion,” Textile Commissioner Kavita Gupta told PTI.
According to a PTI report: She was speaking after inaugurating the 65th national garment fair here.
“Rebates on state levies have been introduced to encourage exports. There is an additional 10 per cent subsidy for the garment and made up segments, which means the home textile industry will effectively get 25 per cent capital investment subsidy on new machines they bring in, leading to efficiency and modernisation of the sector,” Gupta was further quoted by PTI as saying.
Subsidies have proved be very beneficial for the sector and led to increase in employment and attracted huge investments, she said.
The textile industry needs to utilise the various schemes launched by the government for the benefit of customers, the commissioner added.
The industry is looking at entering into CIS, Africa and Far East markets to increase garment exports, apart from our traditional markets of US and Europe, Gupta said.
To showcase business opportunity, Clothing Manufacturers Association of India (CMAI) has organised three-day national garment fair, the largest apparel trade show in Mumbai.
The B2B fair will be spread over approximately 6 lakh square feet, covering all the halls at the Bombay Exhibition Centre.
“We hope to generate 10 per cent increase in trade at Rs 750 crore from this fair, which will have 881 stalls displaying 1005 brands by 822 exhibitors,” CMAI President Rahul Mehta told PTI.
Whilst welcoming the GST, Mehta said the government needs to reduce the GST applicable on job work for garments and made ups from 18 per cent to 5 per cent.
The 18 per cent GST would be a major blow to the small manufacturers, most of whom follow the job work basis of manufacturing, he added.