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Important to resolve blocked taxes, refunds of GST to ensure growth of apparel sector: Amitabh Kant

Updated: Jan 01, 1970
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Stressing on the need to resolve bottlenecks including blocked taxes and refund related issues for the Apparel Sector comprising of a fair share of micro, Small and Medium Enterprises (MSMEs), NITI Aayog CEO Amitabh Kant said that there is an immediate need to create positive signs for sector.

Kant made these remarks during the 40th year of Apparel Export Promotion Council (AEPC) at AEPC Head office in Gurgaon.

He further said that China has started moving out of the apparel sector and there is a huge opportunity for India.

“Today the wages in China are 2-3 times that of India and given the aging population of China, the cost of apparel manufacturing will continue to rise there. In such a scenario, the global suppliers will start looking at other avenues for sourcing. Countries like Bangladesh and Vietnam are having preferential access in European Markets and hence it is extremely important that we get the FTA with Europe ratified at the earliest”, Kant said.

Kant also emphasized that the Indian industry at present is largely relying upon cotton and there is a need to progress in man-made fibres as well

Commenting over the concerns raised by the MSMEs involved in sector with reference to the new taxation, Kant acknowledged that here has been a reduction in the benefits of the Industry post GST roll-out.

Eyeing at facilitating relief he said that the government is looking at to bring the rates at par with the rates prevalent in the previous regime.

“For the benefit of the Industry central and state levies should be refunded and Government will work with the Industry to resolve this issue”, Kant added. (KNN/YV)

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