TN textile exports fall in 2017-18
Export of knitwear and readymade garments from Tamil Nadu fell by 5.6 per cent in 2017-18 owing to various reasons, including demonetisation, GST and global competition.
Export of knitwear and readymade garments from Tamil Nadu fell by 5.6 per cent in 2017-18 owing to various reasons, including demonetisation, GST and global competition. The garment exports from Tirupur reduced by Rs 16,000 crore last year, O S Manian, Handlooms and Textiles Minister, said. Replying to a question on demands for grants for Handloom and Textiles department, he said textile exports dipped by 10 per cent across India and 5.6 percent in Tamil Nadu.
â€œAbout 6500 knitwear and readymade garment companies in Tirupur export to the tune of Rs 50,000 crore a year and provides employment to six lakh workers. However, owing to GST, demonetisation and global competition, textile exports turnover fell to Rs 34,000 crore last year,â€ he said. Because of the Stateâ€™s efforts GST on garments was reduced to five per cent.
He pointed out that higher taxation and reduction in other monetary incentives had put the textile industry in deep crisis. The Centre had reduced the rebate on State Levies (incentive provided for exporters on the value of exported goods) from 3.5 per cent to 1.7 per cent. Manian said the Centre is yet to settle the Rs 500 crore dues to Tirupur garment companies.