Business growth in textile sector is not much stable. Policy wise government needs to support on duty drawback and port congestions. We have lot of competition with China and Bangladesh.
Business growth in textile sector is not much stable. Policy wise government needs to support on duty drawback and port congestions. We have lot of competition with China and Bangladesh. Import duty of man-made specialised yarn is very high. We are still making basic low value products but due to lack of inputs and resources we not able to challenge China, Taiwan and Vietnam for technical garments and fabrics.
We talk about sports and performance wear but India is just making low end basic products when it comes to man- made yarn (mainly poly and nylon kinds). I think we have to stop thinking we will get low prices business in future. That will all go to Bangladesh, Ethiopia, Sri-Lanka and other 3rd world countries. But we have to start planning for niche and value added products. Hope we don’t get caught up into napping again like it happened when China was rising.
Akhil Seth, Versatile Enterprises Pvt. Ltd., Ludhiana.
We have cut down on the cost and are only working for the customers who are paying the right amount of profit. As for the garment policies are concerned, we are hopeful that they would increase the drawback duty percentage. I think the duty and drawbacks are favourable if you have the right customer you can still sustain. We are not targeting the big buyers anymore. We are happy with the small quantity business.
Neeta Yadav, Tharang Apparels, Delhi.
The business growth has been next to none this year. It’s been a very slow time for market. The existing Govt. policies are not supportive at all. I see a pessimistic view for 2020 as of now. I am not very hopeful about it. I don’t think any short term solution is there regarding the market. I think long term revolution of going out of the norms to do business and all of these issues can only help.
Our tax structure and everything is so unfavourable at this moment that I don’t think there is any chance of competing with Bangladesh. 2020 also it’s not going to be a good year. May be the scenario will be on the verge of revival by the end of 2020 but I don’t think the year is going to get any good.
Fahad Ikhlas, Sky Techno Craft, Delhi.
The situation is very bad. According to news also there is almost no export this year. I don’t know about the future but this is a life-and-death situation for exports. For the last two-three years the business is going down only. I don’t know how long it will remain like this. At this moment there is just no export at all. You never know what will happen next about the policies though.
Govt. has to give incentives as the competitive countries are giving. Bangladesh has a minimum wage of 3,000 tks whereas, here in Delhi its Rs. 14,000 thousand now. So these manufacturing costs are definitely affecting the business. The fabric is getting costlier even though there is no export business, Govt. policies are not favourable . I strongly feel these are the reasons behind the situation and in 2020 also it’s going to be the same. It cannot revive anytime soon.”
Shashi Prakash Chopra, Rupy Fashions, Delhi.
“The business has been a bit slow this year. We have a fixed client base and there has not been much of rough phase. The Govt. policies are growing tougher.
But the market has survived the demonetisation process and things are becoming stable day by day so I have hope for 2020 that the business will grow. I have hopes for stability in market now. India has bigger domestic market than Bangladesh so we should not forget that and focus to improve it. In export they might be better but that can be improved as well.”
Jai Pal Singh, Monash Apparels Private Limited, Noida.