Indian apparel exporters are seeking a hike of duty drawback of about four per cent to 4.5 per cent to alleviate the embedded taxes which have been paid by them. This hike could translate into a Rs 5,000 crore boost to the apparel export sector and enhance its competitiveness.

This duty is embedded in various items like cotton seeds, electricity duty and taxes on diesel. India’s readymade garment exports to the world in the April-November period of 2018-19 decreased by 9.70 per cent compared to the corresponding period of the last fiscal.

Readymade garments exports in November 2018 grew 8.98 per cent as against November 2017. Growth in apparel exports is expected to be flat this year.

There has been a positive trend in exports for the entire textile value chain. The IIP production data for textiles and clothing also witnessed robust year on year growth during September 2018 as compared to September 2017. The textile and apparel industry saw a growth of 5.4 per cent and 20.9 per cent respectively during September 2018. Growing positive trend shows visible signs of recovery after a difficult period. The industry was under major stress especially after the implementation of GST.