NEW DELHI: The handmade product industry comprising of different sectors including carpet is heading towards losing its hold it once had on the global market in the aftermath as the Micro, Small and Medium Enterprises in the sector continue to face the heat of nuances under the Goods and Services tax (GST), Carpet Export Promotion Council (CEPC) said.
Mr. Mahavir Pratap Sharma, Chairman of the Carpet Export Promotion Council (CEPC) informed that the situation of the country’s export is bleak and visible to everyone.
The prime problem being the blockage of the capital under the GST, because of which the production cycle that got punctured since November last year is still not been able to rotate smoothly so far.
Explaining the situation further, Sharma said that for a large exporter, the blockage of capital is a concern that it can very well overlook, but the handmade carpet sector being primarily comprising of the Micro, Small and Medium Enterprises, the blockage in a way handicaps the sector.
Commenting on the slowed exports and business, Sharma informed that the early assessment suggests a sharp decline of over 15-20 per cent in the carpet sector. Also another major shock to the sector recently is the revised duty drawback rate, while the businesses were already struggling to catch hold of the situation.