Perfect Sourcing Magazine - September 2017

In this issue

SEASON OF FESTIVALS BEGINS, BUT TROUBLES CONTINUE
We are now in the last quarter of the year and despite all odds, everyone is still fighting strong. Post demonetisation and GST, the business environment has undeniably been affected and chaos rules the market. Right from yarn to garmenting, every individual in the supply chain seems confused about the new taxation system.
If we talk about exporters, their immediate and palpable concern is duty drawback
rates, which are on the verge of a drastic decline, as a result of which they are not
thinking of adding capacities but just focussing on sustaining themselves. This in turn
has impacted machinery importers who are not getting orders for new machinery.
According to them, only those exporters who are in middle of expansion are buying and there too, payment delay is rampant. Private sector investment has collapsed and the economy is running on just the one engine of public spending. The most worrisome aspect of all this disarray is the impact on job creation. Jobs have been extremely hard to come by for the youth of the nation. The engine that was running at full steam has suddenly lost pace, which is clearly reflected in the drop in GDP.

Industry Relieved As Government Clarifies Minimum Monthly Wages  Not Going To Be Fixed At Rs 18,000.

After a lot of confusion and debate over the increase in minimum wages as per the new labour laws, the Government has finally given some relief to the already struggling garment industry by stating that the minimum monthly wages are not going to be fixed at Rs 18,000/-. Prior to this, The Apparel Export Promotion Council (AEPC) had urged the Indian Government to clear the confusion over minimum wages for the garment sector at the earliest, as a clarification would restore the confidence of foreign buyers.

3 mins

Creating Niche In Innerwear Segment-Palash Overseas

Creating Niche In Innerwear Segment-Palash Overseas

4 mins

Velvet Traditional Yet Influential In Fashion

On the other hand, a few people have differing opinions about velvet. “New government policies have affected the business a lot, demonetisation had already caused a huge loss and GST has simply added to those wounds. 12% GST rate solely on velvet whereas GST on other fabrics is only 5%, has closed doors for export for many like us” said one of the officials from Kedarnath Velvet. He also said that even though Velvet is trending worldwide, exports are suffering due to taxation schemes in India. Also, China is hugely competitive.

3 mins

Implications Of GST: A Double Edged Sword

It seems that confusion related to GST will not fizzle out soon as industry players from both the apparel and textile sectors are very often seen raising their concern about GST and the confusion related to it.

4 mins

Read all stories from Perfect Sourcing

Perfect Sourcing Magazine Description:

The leading publication for the Indian export textile & apparel Industry.The magazine is distributed free of cost at more than 30 national and international B2B fairs and exhibitions related to apparels, home textiles, hard goods, denims, machinery and, accessories. We have a good presence at industry conferences, seminars, symposiums, etc.With a circulation of 27,000 copies every month we offer you the opportunity to be in front of approx. 30,000 potential clients who are either the Chairman, MD’s, CEO’s CFO’s COO’s, Owners, production and merchandising teams in textile, home textile, fabric, testing, apparel, floor coverings, handicraft, rugs and retail market of India, who make decisions on company’s behalf.