Textile MSMEs to be severely affected under new duty drawback rates: SIMA

New Delhi, Sept 26 (KNN) With the government’s notification on new duty drawback rates, the Micro, Small and Medium Enterprises (MSMEs) in the textile sector fear severe implications, Southern India Mills Association informed.

SIMA Chairman P Nataraj in a press statement said that the sector is aleady grappling with several issues including compliance complications under the new tax regime.

The revised duty drawback rates will further add to the woes of the sector and bring down its capacity to face the global compeition.

Also MSME body Tirupur Exporters Association (TEA) raised similar concerns over the new duty drawback rates.

TEA informed that he reduction in drawback rate to knitwear export sector from 7.6 to 2 per cent is more likely to have severe impact on the industry of the region.

Explaining the worrisome situation, TEA said that the announcement has come as a shock to the exporters and manufacturers.

There is great deal of anxiety regarding the losing of business to other rival countries including Sri Lanka, Bangladesh, Vietnam and Cambodia.

The association raised that once the interest of the global market shifts away from India to other countries, it would be next to impossible to restore the position once India had in the global market.

The associations have written to the Finance Ministry urging to reconsider the decision to reduce the duty drawback rate. (KNN/DA)