The Indian Express reports, at a conference on ‘India as a Global Sourcing Hub & Investment Destination’, convened to discuss challenges in the textile sector, Gautam Nair, chairman of Matrix Clothing, said: “The GST implementation has brought in serious uncertainty, particularly to exporters. Will we be refunded all the embedded taxes, what about those taxes not covered under GST?” He added: “Whereas a bulk of the world market is in synthetics, India competes in cotton and related segments, while China straddles the whole market place. Labour laws are a huge constraint deterring large-scale corporate investment and the sector gets no duty advantages to EU and Canada unlike our competitors like Sri Lanka, Pakistan, Vietnam and Bangladesh.”
Rakesh Mohan Joshi, faculty at Indian Institute of Foreign Trade, said that GST implementation remained a concern for the industry at large. He said a study titled ‘Challenges & Strategies to Promote India as a Sourcing Destination for Textiles’ found that India’s textile exports have dropped since 2014 and were pegged at $35.4 billion with 4.89 per cent of global market share.
65 MoUs Signed:
Totally 65 MoUs were signed as part of the Textiles India 2017 Summit between various domestic and international organisations in the presence of Union Textiles Minister Smriti Irani and MoS Ajay Tamta. The signed MoUs include three G2G memorandums with China, Australia and Bangladesh. Other signatories include organizations from Sri Lanka, Japan, Slovakia, Afghanistan, Turkey and more.
The MoUs signed relate to exchange of information and documentation, research and development, commercialisation of handloom products and silk production, cooperation in geo-textiles, skill development and supply of cotton and trade promotion with overseas partners.
"In two days, we have signed 65 MoUs. We are hoping a large scale of investment. Here is a government which is here for redressal of your grievances. The government is also willing to listen the problems you face," Minister for Textiles Smriti Irani told during the investors meet in Gandhinagar after signing the MoUs.