2017 brought new challenges for carpet MSMEs, sector showing easing signs as year ends: CEPC

New Delhi, Dec 28 (KNN) With 2017 coming to an end, the carpet industry comprising primarily of the Micro, Small and Medium Enterprises (MSMEs) were introduced with new challenges amidst Goods and Services Tax (GST), however things are beginning to smoothen up, Carpet Export Promotion Council informed.

Talking to KNN, Mahavir Pratap Sharma, Chairman of Carpet Export Promotion Council (CEPC) said that year did introduce the carpet sector to various challenges including the new taxation.

“The implementation of One Nation One Tax regime halted the momentum to some extent for the carpet sector, as the industry registered negative growth in the July-August period”, Sharma said.

Commenting over the problems that still persist, Sharma informed that the capital blockage continue to remain a major concern for the sector.

“The cycle for the carpet industry is too long as compared to other sectors, therefore the capital blockage is something that becomes way too heavy for us”, Sharma said.

Apart from the momentum being affected by GST, the sales were also hit by a fall in the overall global demand.

The world market including United States as well as Europe is not in the best shape, however despite the grappling demand, carpet sector in India did not perform that bad, Sharma informed.

Commenting over the expectations of the sector in the upcoming fiscal, Sharma said that carpet industry will certainly look up on the GST council at the 5 per cent promise.

“We expect the Textile Ministry to handhold the sector by providing special package for training women in this sector”, Sharma said.

Coming year can be the year dedicated to facilitate skilling among women so that the overall growth in this sector can be achieved, he added. Also dedicated programs for rural youth are another thing the sector would definitely want.

Commenting over the global competition, CEPC said that Indian carpet exports would want government to come up with marketing and branding strategies to sell out the high quality india  carpet in the world market. (KNN/ DA)