give any 5 problems of the textile Industry ? IN POINTS
Answers
Textile industry with Indian perspective is passing through a very challenging time..
[1] Textiles and apparel exports dropped by nearly Rs 8,000 crore to Rs 2,30,056 crore in 2017-18 owing to competition from emerging economies like Bangladesh and Sri Lanka which enjoy preferential duty access in key markets.
1.Lesser demand from the overseas buyers preference to China,Bangladesh and Sri Lanka for various reasons.
2. Continuously increasing cost of raw material[2] ,fuel,power ,man power and now dyes chemicals.
Double whammy: Spike in dye, cotton prices worry textile industry - Times of India
3.Pollution problems.
4. Water scarcity. The World Resources Institute (WRI), basing its findings on a new early warning satellite system, warned that shrinking reservoirs in India .
5.GST also affected the textile industry specially domestic
6.New markets like African countries, Ethiopia, Cambodia and Vietnam are more competitive than us in cost.
Cambodia[3] is strategically located in the heart of Southeast Asia. Cambodia's labour costs are highly competitive and compare favourably with those in other Asian countries. Furthermore, as a least developed country (LDC), Cambodia benefits from duty-free and quota-free access to the major global markets. Cambodia's clothing factories have earned a well deserved reputation for their corporate social responsibility (CSR) programmes.
Vietnam[4] saw its textile and garment exports grow more than 14% in the first half of 2018
7. Need of more supportive policies[5] and incentives from the government.The government is fine tuning the GST impacts which were causing a distress among textile industry .The amendments will be helpful to ease out the situation.Recently two changes are made:_
A)It also provides for modification of reverse charge mechanism, separate registration for companies having different business verticals, cancellation of registration, new return filing norms and issuance of consolidated debit/credit notes covering multiple invoices.Read more at: Cabinet approves Amendment to GST Laws | Taxscan
B)The government has doubled import duty on over 50 textile products -- like jackets, suits and carpets - to 20 per cent, a move that is aimed at promoting domestic manufacturing. The Central Board of indirect Taxes and Custom (CBIC) late last night notified list of textile products on which duties have been hiked to 20 per cent.