For the readymade garment sector, reeling under a slump for some time, things are rather looking up. A revival of exports during the current fiscal (2019- 20) is on the cards. The trigger is the recent announcement of a new scheme for rebating all Central and State embedded taxes levied on various inputs such as coal, electricity, fuel etc., that add to the cost of exports of garments and made-ups. Thus, a longstanding demand of the textiles and clothing industry has been met. In overall terms, the decision is expected to bring in an additional benefit of about 3.5 per cent to 4 per cent to the garment segment, as per the current reckoning. On the flip side, however, is that the scheme does apply to yarn and fabrics – critical sub sectors of the industry’s growth engine.

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