The Government’s decision to withdraw the Merchandise Exports from India Scheme (MEIS) with retrospective effect is likely to erode profit margins of textile players. It will also impact exports and fresh investment in the sector.
Browsing: Cotton Textiles Export Promotion Council
The Government’s decision to withdraw the Merchandise Exports from India Scheme (MEIS) with retrospective effect is likely to erode profit margins of textile players. It will also impact exports and fresh investment in the sector.
Indian textiles and clothing industry, the second largest employment provider (around 11 crore people) next only to agriculture was the second largest exporter in the world during 2017, now it has slipped to 5th position due to global recession especially in the aftermath of US-China trade war and the tariff concessions extended for the competing Nations like Vietnam, Bangladesh, Pakistan, etc.
Tamil Nadu textile industry that accounts for one-third of the textile business, 47 per cent of the spinning capacity providing direct jobs to over 60 lakh people especially to rural masses and women folk and fetching Rs 60,000 crore as forex earnings, is the worst affected in the country under the current unprecedented recession due to raw material / finished goods transport cost and several other factors.
The Southern India Mills’ Association (SIMA), Coimbatore organised Texfair 2019 – largest expo of textile machinery, spares, accessories and other supporting services and Farm to Finish Expo 2019 – expo showcased right from raw material to finished products during August 9-12, 2019 at CODISSIA Trade Fair Complex, Coimbatore.
The textile industry expects exports to increase with the government extending refund of State and Central taxes on shipments of apparels and made-up goods.
India held a special place in global textile trade as the second largest textile exporter in the world. Today, cotton yarn and fabric exports account for over 23 per cent of India’s total textiles and apparel exports.