New Delhi, Nov 25 (KNN) The Government recently announced rates for incentives under the Merchandise Exports from India Scheme (MEIS) for two sub sectors of Textiles Industry, including the readymade garments and made ups enhanced from two per cent to four per cent of value of exports, this however has failed to woo the sector, Okhla Garment and Textile Cluster informed

Talking to KNN, PMS Uppal, President of Okhla Garment and Textile Cluster (OGTC) explained the situation.

He informed that in the aftermath of the implementation of the Goods and Services Tax (GST) in the country, the sector is badly hit due to the complications in availing reimbursements, RoSL and the mechanism.

In such a scenario, mere increasing the MEIS rate by doubling it is of no use while on the other hand there is a 10 per cent impact on the overall cost and price incurred by the manufacturer.

Uppal further said that after the GST, the input costs have also risen leaving no scope for a viable business ecosystem in the country.

“Doubling the MEIS does no good to the sector while the manufacturing is in stress by over 10 per cent of the costs incurred”, said Uppal.

He also informed that the textile manufacturers in Delhi and adjoining region including the Apparel Exporters & Manufacturers Association (AEMA), Garments Exporters Association(GEA), Okhla Garment and Textile Cluster (OGTC) and Noida Apparel Export Cluster(NAEC), have also called for a conference to voice the concerns to various ministries and authorities, highlighting the serious erosion of the competitiveness due to the sharp reduction in the drawback and RoSL rates.

Order bookings in this peak season has been badly hit by the uncertainties prevailing as also the procedural issues, being faced by the industry, post GST, he added. (KNN/DA)