(Eds: Correcting word 'million' to 'metric' in para 5)By Roopshree NairNew Delhi, Dec 29 (PTI) 2018 may turn out to be achallenging year for India's textile and garment industry,with exporters still reeling under the impact of GST andoutward shipments likely to miss the USD 45 billion target for2017-18.
Garment exporters have been demanding that the dutyreimbursement to them be retained at the pre-GST (Goods andServices Tax) drawback rate of 7.5 per cent, amid decliningoutbound shipments.
India's apparel exports declined 39 per cent in valueterms in October.
However, India's cotton production could touch 37.7million bales in the year that began on October 1, up from34.5 million bales produced in 2016/17.
The production of import substitute bivoltine silk in thecountry is expected to reach around 6,200 metric (rpt) metrictonnes (MT) in 2017-18 as compared to 5,266 MT a year ago,registering an increase of 19 per cent, according to theTextile Ministry.
Meanwhile, 2017 turned out to be a mixed bag for thetextiles sector. While initiatives were unveiled for powerloom units and weavers, the much-awaited new National TextilesPolicy is yet to see the light of the day.
Towards the end of the year, a Scheme for CapacityBuilding in Textile Sector to boost skill development and jobcreation was launched with an outlay of Rs 1,300 crore. 10lakh people are expected to be skilled and certified invarious segments of Textile Sector through the scheme, out ofwhich 1 lakh will be in traditional sectors.
The year also witnessed the first mega internationaltrade event for the textile sector, which was inaugurated byPrime Minister Narendra Modi in Gandhinagar, Gujarat, on 30June.
The event recorded participation from more than 100countries and a total of 65 MoUs with an estimated value ofover Rs 11,000 crore were signed during the exhibition.
India Handmade Bazaar, an online portal to provide directmarket access facility to artisans and weavers, was launchedin January.
In November, the Textiles Ministry notified post-GSTrates under the scheme for Remission of State Levies (RoSL) onexports of readymade garments & made-ups. For garments, therates range between 1.25 per cent and 1.70 per cent and forMade-ups, they range between 1.40 per cent and 2.20 per cent,with the rates effective from October.
The government also enhanced the rates under MerchandiseExports from India Scheme (MEIS) on readymade garments andmade-ups from 2 per cent to 4 per cent. The rates willve applicable between November 1, 2017 and June 30, 2018.
A comprehensive national policy covering all segmentsof the textiles sector is the need of the hour, to give a pushto exports from the sector, which have remained stagnant forthe past four fiscal years, mainly because of less demand inmajor markets such as the US, EU and China, and stiffcompetition from countries like Vietnam and Bangladesh whichenjoy an edge over India. PTI RSN ANZMR.
This is unedited, unformatted feed from the Press Trust of India wire.