NEW DELHI: Textile and garment exports are likely to miss the USD 45 billion target for 2017-18, as the industry reels under the impact of GST roll out and tariff advantages enjoyed by competitors like Bangladesh and Vietnam, according to Textile Industry Body CITI.
"At best, we will come close to USD 40 billion," CITI (Confederation of Indian Textile Industry) President Sanjay Jain said recently.
In fact, shipments from the textile and clothing sector have consistently missed annual targets set by the Government in at least the previous three financial years, since 2014-15.
According to Jain, the domestic textiles and apparel industry faces a big threat from rising imports due to the removal of countervailing duty and special additional duty in the Goods and Services Tax (GST) regime.
"Although these duties have been replaced by IGST, the fact that an importer can adjust them as per his tax liability has led to a 15-16 per cent downfall in the import protection enjoyed by the domestic industry earlier," the CITI Chief points out.