At a session organised by the All India Professional’s Congress, P Chidambaram, Former Union Minister emphasised on the need to reducing import duties in the apparel sector to ensure a more sustainable growth.
Chidambaram pointed out, when the BJP government took power in 2014, the average customs tariff was only 8 per cent, but it has now risen to 13 per cent. He argued that an economy heavily controlled by the government cannot compete effectively in the global market.
During the seven years of Prime Minister Modi’s administration since 2016, India’s apparel exports dropped by 15 per cent, Chidambaram revealed. On the other hand, exports from Bangladesh increased by 65 per cent during the same period. Data from the Apparel Export Promotion Council shows, India’s apparel exports declined from $16.2 billion in 2022–23 to $14.5 billion the following year. Although some improvement is anticipated in 2024–25, exports continue to remain below the previous year’s levels.
He criticised the imposition of government control in the industry through regulations like the Company’s Act, Income Tax Act, and the rules set by the Director General of Foreign Trade (DGFT).
Chidambaram also criticised the government for neglecting labor-intensive sectors like apparel manufacturing. He pointed out, while China's decline has benefitted Bangladesh and Vietnam’s garment sectors, India has not experienced similar advantages. He reiterated that tariffs on apparel have escalated.
