Web Exclusive | July 2018
Apparel exports to decline by 10% in FY19 due to GST
India’s apparel exports downturn may continue and is expected to decline by overall 10 per cent in FY19, a senior industry official said. In 2017-18 exports declined by 4 per cent to $16.7 billion.
“Country’s apparel exports have taken a beating from October 2017 onwards. The introduction of GST has resulted in non-refund of several embedded taxes. Consequently exports for the financial year 2017-18 declined by 4 per cent to $16.7 billion from 17.38 billion in the previous year,” the Clothing Manufacturers Association of India (CMAI) president Rahul Mehta told.
The downturn continued in FY 2018-19 with a month on month decline of 8-10 per cent and it is expected to witness overall decline by 10 per cent in FY19, Mehta said. The country exports nearly 70 per cent of cotton garments and 20 per cent jump in cotton prices in last few months has also hit exports severely, he said.
The industry is having talks with the textile ministry and the government has assured that embedded taxes will be refunded through the drawback route.