Delhi NCR apparel exports industry slows down

First a snapshot of garment industry:

First a snapshot of garment industry:

• INR 1,50,000 crore industry.

• 2nd largest employer after agriculture.

• 3 big clusters; Delhi NCR, Tirupur and Mumbai

• Report by Asian Development Bank

• Top brands; Triburg, Fabindia, Indo Rama, TCNS Clothing ( Source)

What’s causing the slow down?
Growth slowed down to 6% from a high of 25% in 2016.

• Not upgrading the manufacturing.

• FTAs of competing nations with destination markets.

• GST caused delay in credit refunds and less incentives.

What’s the way out?
PMO has stepped in to resolve the issues.

• Extend the date of exemption.

• Less cess on imports.

• Nominal GST of .1%.