Apparel exporters seek drawback hike to improve competitiveness

Kolkata, Dec 18 (IANS) In a bid to be more competitive in global markets, apparel exporters are seeking a hike of duty drawbacks of about 4-4.5 per cent to alleviate the embedded taxes which have been paid by them, an official said here on Tuesday.

"After taking all calculations, we still find there is a gap of about 4-4.5 per cent of duty, which we have been paying as this duty is embedded in various items like cotton seeds, electricity duty and taxes on diesel. We are unable to recover this, and thus our competitiveness weakens," Apparel Export Promotion Council (AEPC) Chairman H.K.L Magu said.

The demand for increasing an additional 4 per cent in duty drawbacks or Goods and Services Tax (GST) refunds, could translate into a Rs 5,000 crore boost to the apparel export sector, he said on the sidelines of the Retail India summit, organised by the Indian Chamber of Commerce.

He said the growth in apparel exports would be flat this year.

India's readymade garments exports to the world in the April-November period of 2018-19 was to the tune of $9,976.14 million, which has decreased by 9.70 per cent from a total shipment of about $11,047.52 million in the corresponding period last fiscal.

"It is only since October, things have started looking positive as market and GST refunds have started getting a release," he said.

Readymade garments exports were to the tune of $1,129.02 million in November 2018 with a growth of 8.98 per cent against the corresponding month of November 2017, which was $1,036.01 million.