Bizarre garment rules tie down textiles companies

Source:, Dec 19, 2016

NEW DELHI: Did you know that your shirt may be among several products that mandatorily need a date of manufacturing? And till a few years ago, some shirts also had to mention the date of expiry to avoid “visits“ by “inspectors“.

The country’s archaic and often bizarre rules for garment manufacturers and retailers meant that the last vestiges of `Inspector Raj’ continued for this crucial sector. Most of them, including some of the biggest names in the industry , have been grappling with laws that treat clothes in the same way that inspectors deal with packaged atta or sugar.

There are several examples to show how bizarre the rules are. In a metropolitan city , inspectors from the state’s weight and measures department issued a notice to the directors of a leading garment brand as the tag did not mention the measurement in metres.

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Cabinet clears easier labour laws, tech upgradation for textiles sector

Source: The Economic Times, Dec 08, 2016

NEW DELHI: The Union Cabinet on Wednesday approved a set of reforms, including simplified labour laws and technology upgradation for the made-ups sector. “The interventions are expected to boost employment in the textiles sector and create jobs for up to 11 lakh persons, lead to increase in exports and enhance benefits to the workers in the textiles and apparel sector,” said an official release.

Made-ups, which includes products like towels and bedsheets, is the second largest employer in the textiles sector after apparel. The government will provide production incentive through enhanced Technology Upgradation Fund Scheme (TUFS) subsidy of additional 10% for made-ups similar to what is provided to garments based on additional production and employment after three years.

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Govt considers providing tax benefits, marketing support for powerloom sector

index.jpgSource: The Economic Times, Nov 15, 2016

NEW DELHI: A mega package for the powerloom sector is in the works, focused on upgrading units. The package will include social welfare schemes, insurance cover and cluster development of power looms.

This would be the second in a series of incentives for the textile sector, after a Rs 6,500 crore package announced for garments in June. At present, less than 2 lakh power looms of the total 25 lakh are technologically upgraded.
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Government plans overseas roadshows to boost textile exports

Source: The Economic Times, Oct 23, 2016

NEW DELHI: Government plans to conduct roadshows to promote the country’s textiles in non-traditional markets like Russia, South America and select countries in West Asia, at a time when shipments from the sector have been declining.

Textile exports from India remained flat in 2015-16 at $40 billion as compared to $41.4 billion in the previous year.

Moreover, Indian textile and apparel exports have been losing their competitive edge to countries like Bangladesh and Vietnam in recent years.

“We are eyeing non traditional markets like Russia, South America and some countries in West Asia which are relatively free from turmoil like Saudi Arabia, Kuwait, Qatar and the United Arab Emirates. We will hold roadshows to showcase Indian textiles in these markets,” a senior official told PTI.

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India plans roadshows for promoting textile exports to new markets

Source: The Economic Times, Oct. 12, 2016

NEW DELHI: Plummeting textile exports have prompted India to look outside traditional markets and tap the ones being served by competitors such as China. The textiles ministry is planning to do aroadshows to promote Indian textiles in the new markets, officials said.

“We used to hold roadshows earlier and we want to approach new markets through these. We have identified Russia, South America and West Asia to boost exports,” said one of the officials, who did not wish to be named. Read the rest of this entry »

India explores Iran market for textiles exports

Source: Business Standard, Jul 06, 2016

Mumbai: In an attempt to reduce dependence on the European Union and United States for growth, Indian garment exporters are exploring opportunities in Iran.

A delegation led by the Ministry of Commerce and accompanied by over half a dozen industry officials recently met with their counterparts there. The Indian delegation discussed a host of issues including prevailing taxes and relaxation in policy support for hassle-free export of textiles to Iran.

“Although the United States and the European Union are important markets for us, we are exploring new markets for textiles exports to reduce our dependence on these two regions,” said Rashmi Verma, Secretary, Ministry of Textiles, on the sidelines of an event in Mumbai.

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India’s garment exports may hit $20 billion in FY17

Source: Times of India, Jun 28, 2016

MUMBAI: India’s garment export is expected to rise to $20 billion during the current fiscal, helped by the new initiatives announced by the government for the sector, an industry official said on Tuesday.

The Union Cabinet last week approved a Rs 6,000 crore package for textiles and apparel sector with an aim to create one crore new jobs in three years and attract investments of $11 billion with an eye on $30 billion in exports.

“India’s garment exports, estimated at $16.80 billion now, is expected to reach $20 billion during the current fiscal. The special package announced by the government will not only help in attracting large investments but also enhance production capacity,” Clothing Manufacturers Association of India (CMAI) president Rahul Mehta told reporters here.

The inclusion of state-level taxes in the computation of duty drawback will provide a major relief to the exporting segment, Mehta said.

However, the prevailing downturn in the global economy continues to adversely impact India’s garment industry. During the first quarter ended June 2016, the industry may see a five per cent decline in exports. Total exports of apparel from India stood at around $4 billion in April-June 2015.

The domestic garment industry also faces dull market conditions and may see flat growth or a two per cent decline in consumption in the quarter ended June, 2016, Mehta said.

CMAI is organizing a mega trade show — “The National Garment Fair” — on July 13-15 in Mumbai. The event will see participation from 812 brands and nearly 40,000 retailers from across the country are expected to visit the three-day B2B fair, Mehta said.Commenting on Britain’s exit from EU, Mehta said there may not be an immediate fallout of the referendum on the business front, but there could be a period of uncertainty and confusion for some time.

He said there may not be any dramatic impact on India’s garment exports to the UK or EU. However, a lot would depend on the exact agreements and treaties to be worked out by both sides, especially on tax plication on movement of goods between the two geographies.

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Results are good and will be better ovr a period of time. Thanks to policy improvements.Mukesh Rawat

Mehta demanded aggressive follow-up for Free Trade Agreement (FTA) with EU and other countries. Post-Brexit, he felt, there could be a further delay in the signing of the FTA with EU The apparel industry also sees huge export potential in Iran, which has a $16-billion market and nearly 60 per cent of the demand is met through imports, he added.