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Apparel Manufacturing shows decline for the 10th straight month in February

India’s apparel production has shown a decline of 4.7 per cent in the month of February as per the latest IIP figures released. The apparel manufacturing has suffered the 10th straight monthly decline in apparel production on account of the issues which have arisen after the implementation of GST.

 Talking about the decline in production, Mr. HKL Magu, Chairman, Apparel Export Promotion Council (AEPC) said, “Apparel Manufacturing is clearly in recession as  the latest production figures shows a decline of 4.7 per cent in apparel production. The apparel production has been down for tenth straight month which indicates towards shrinkage in the Industry. Unresolved issues like the reduction in the duty drawback and RoSL after the imposition of GST, capital blockage due to slow GST refunds and uncertainties on future of export subsidies have affected the sentiments of the industry. The global demand positions are good and the Industry is keen to take up more orders but cost disadvantage is affecting India's relative position as a sourcing destination." 

As per the IIP figures, there has been a month to month decline in apparel productivity, from a positive growth of 1.3 per cent in April 2017, May saw a fall of 5 per cent. In June the decline was 3.2 per cent while in July, it was 5.1 per cent. In the month of August, September, October, November and December the Industry had recorded a decline of 6.4 per cent, 7.2 per cent, 11 percent, 13.1 per cent and 13.5 per cent respectively. In January, the apparel production recorded a dip of 10.7 per cent. 

AEPC has been engaging with the policy makers for an early resolution of the issues.

 

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