Export of Ready-made garments grew 8.06% in May

Posted by Daily Shipping Times on 27-06-2017        Tweet

NEW DELHI: India’s export of ready-made garments registered a positive growth of only 8.06% in the month of May as compared to same month last year.

Ready-made garment exports stood at $1605.37 million in May 2017 as compared to $1485.67 million in the same month last year. In terms of rupee, the exports were Rs.10342.55 crore in May this year as against Rs.9940.10 crore in May 2016, registering a growth of 4.05%, Apparel Export Promotion Council (AEPC) said in a release.

“The decline in growth is attributed to two reasons. Though the exporters are happy with the new rates announced by the Government under the Goods and Services Tax (GST), they need to ensure compliance with the GST for input credit for the already existing stock on June 30 which has led to curtailment in production,” Ashok G Rajani, Chairman, AEPC, said in a statement.

“Secondly, there is uncertainty about the continuation of Rebate of State Levies (RoSL) scheme, which was appreciated and used by SMEs in large numbers to boost exports, and is another reason for declining of exports,” he added.

According to a recent survey conducted by AEPC in 8 States where there is significant apparel production, around 85% of apparel exporters admitted that they were substantially benefited by the RoSL in their export performance, while 65% rate the impact of RoSL as high or game changing.