Gujarat accounts for 12 per cent of the apparels exported from India. Manufacturers also indicated that they are facing stiff competition from their counterparts in Bangladesh and Vietnam according to data provided by Apparel Exports Promotion Council (AEPC). Arpan Shah, Vice-President, Gujarat Garment Manufacturers Association (GGMA) said that, the situation with apparel exports is no different, “Exporters used to get duty drawback of 7.5 per cent before GST implementation. This has been slashed to 2.5 per cent, due to which there is a significant impact on exports. As incentives have been cut, the prices of our products have increased.” It was a double whammy, for apparel manufacturers, as some of the key global markets imposed value-added tax (VAT) on apparel exports from India.