Readymade garment exports rise in May
Export of readymade garments has increased 9.25% in April-May this year compared to the corresponding period last year.
“This is clearly because of the support announced by the government in March 2019 for garments and made-ups,” said Sanjay K. Jain, chairman, Confederation of Indian Textile Industry. The Centre announced a Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) in March.
“April and May are usually lean months for exports. But there has been pick up during these two months. We are awaiting operationalisation of the Scheme for Rebate of State and Central Taxes and Levies,” according to Chandrima Chatterjee, adviser, Apparel Export Promotion Council.
The scheme is expected to be implemented shortly. When it was announced, garment exporters gained confidence that they will be competitive internationally as all taxes paid by the exporters would be refunded.
Garment exports grew 14.15 % in May compared with the same period at last year. Garments worth $1,528.02 million were exported in May this year compared with $1,338.57 million in May last year, Mr. Jain said. However, textile exports dropped 1.94 % in May this year compared with last May. “We are just two months into this financial year. As we go along, export of textiles will pick up.
“There is a slowdown in China and so, export of yarn and fabric to this market was down. But, it will pick up in other markets,” said Siddhartha Rajagopal, executive director, Cotton Textiles Export Promotion Council.
The government is considering extension of the RoSCTL for all textile products, added Mr. Jain.
However, textile imports grew 9.01 % in May this year compared with last May. India provides free access to garments from Bangladesh. So, imports are on the rise, he said.
Source :- Thehindu.com