The readymade garment industry has demanded duty free raw material, tax relief and loans at concessional rates from the Finance Minister in the budget. MSME manufacturers and exporters say that the industry is lagging behind in the global export market due to higher production costs compared to countries like China and Vietnam.
This readymade garment factory in Noida is preparing export orders for top European and American brands like United Color of Beneton, H&M, ONLY and ZARA. Work is going on day and night so that the consignment of the summer collection can be ready on time. The company currently has plenty of orders but company President Rahul Malik is very worried about how long he will be able to meet the expectations of the importers on the pricing front due to their declining margins. Because the cost of production is increasing.
Payment problems related to MSME sector should be removed. The industry has requested the Finance Minister to remove import duty on all types of cotton fiber and garment machinery to provide raw material at cheaper rates. QCOs i.e. Quality Control Orders on MMF fiber/yarn should be relaxed. In order to get cheaper loans against export orders, the Interest Equalization Scheme should be extended for the next 5 years. Concessional income tax at the rate of 15% will continue to be applicable for new manufacturing units. An alternative scheme like TUFS should be introduced for factory modernization. Export rules should be relaxed through e-commerce and payment problems related to MSME sector should be resolved soon.
Despite global uncertainties, the export volume of readymade garments is increasing at the rate of 11 to 12% annually but the total exports still remain around 13 to 16 billion dollars. According to experts, the readymade garment industry needs to adopt green transformation and work on a sustainable model. So that the shine of the brand Made in India does not fade in the global market.
The challenge of climate change and technological upgradation is a big issue facing the domestic readymade garment industry. In such a situation, if the Finance Minister makes announcements in the budget like solving payment related problems, increasing liquidity and providing loans at concessional rates, then surely the domestic industry will not only get a faster pace but will also give tough competition to countries like China and Vietnam in terms of pricing. Will be able to.