Feedback
A pioneer B2B media and publication platform connecting with Fashion Brands & Retail in India
 

CMAI’s pre-budget recommendations highlights need for more policy support

 

CMAI conducts survey on its members ability to pay wages

 

The Clothing Manufacturers Association of India, (CMAI) has written an open letter to Nirmala Sitharaman, Minister of Finance outlining pre-Budget recommendations. The association has urged the government to consider key financial aid that can help the industry recover from the aftermath of the Covid-19 pandemic.

Government support for MSME sector

The letter states how the Indian garment industry, whose manufacturing is solely dependent on retail, is the worst affected, in view of the stringent lockdowns, partial lockdowns, and an on off approach to markets being allowed to operate. What compounds the problem is the fact that more than 80 per cent of the garment industry is within the MSME sector, with its own constraints of finance and sustaining power.

Rajesh Masand, President, CMAI, explains it is therefore, essential that the garment manufacturing sector, which is the highest employer in the country after agriculture, gets strong support from the government if it has to survive and recover in coming years. The upcoming Budget for 2021-22 is an ideal opportunity for the government to extend this support to the MSME sector in this crucial industry. Support to this industry will also add tremendous fillip to the ‘Atmanirbhar Bharat’ philosophy of the government.

CMAI, also states how in the financial year 20-21, many companies will face a drastic drop in revenue and profits and it would impact them financially. This would create a situation where banks might drastically curtail or withdraw credit facilities. Hence, CMAI recommends banks should continue giving Drawing Power (DP) based on 2019-20 performance, and not give weightage to the 2020-21 numbers. Furthermore, companies showing any ‘Loss’ return in Income Tax should be not an automatic candidate for scrutiny, as this year it is possible that many companies might incur heavy losses .

GST at 5%, better interest rates

Although retail sales have shown some signs of pick up, it is still struggling at around 60 to 65 per cent of last years’ sales. Consumers are yet to build sufficient confidence to resume normal shopping – especially when it comes to discretionary spending. Hence, the association has strongly recommended the current distinction in GST rates below and above Rs 1,000 is removed, and a uniform rate of 5 per cent GST is applied.

The association also recommended at least for a period of one year, domestic manufacturers are offered working capital interest rates at the same rate as exporters to provide a huge relief to the manufacturers.

The government is contemplating an outstanding PLI Scheme, which for the textile sector been converted to a FPLI Scheme. One of the qualifying criteria for this scheme is a current base turnover of Rs 100 crores. For the garment sector, and especially the domestic sector, there are only a miniscule number of manufacturers who would qualify for this criterion. To really give a massive push to the avowed objective of pushing MMF sector, the association strongly believes the minimum turnover criterion be reduced to Rs 50 crores, for this scheme to be effective.

LATEST TOP NEWS
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10

Online shoppers move away from discounts focus on safety and quality

Online shoppers move away from discounts focus on safety and quality

     COVID-19 has reemphasized the importance of quality, especially while buying FMCG products. Earlier, Indian consumers let discounts determine most of their purchase decisions. However, now they are looking for value-added... Read more

India’s luxury resale segment poised for big growth as new sellers join the fray

India’s luxury resale segment poised for big growth as new sellers join the fray

    Luxe brand hunters in India have never had it so good with brands like Jimmy Choos available at price of a Zara handbag, and Rs 25,000 worth sunglasses from Tiffany... Read more

Citylife Next bags Times Business Award

Citylife Next bags Times Business Award

     Winner of this year’s ‘Times Business Award’ in the ‘Best in Organized Retail Value Chain Category,’ Citylife Next is a one-stop shop for trendy and affordable menswear, womenswear, kidswear and... Read more

Duke’s S/S ’21 collection promotes Atmanirbhar Bharat

Duke’s S/S ’21 collection promotes Atmanirbhar Bharat

     Inspired by international fashion culture, Duke’s Spring/Summer 2021 collection endorses the Indian government’s vision of a Atamnirbhar Bharat. Featuring light floral and leafy print patterns, the collection is made from... Read more

A comprehensive e-com policy needed to boost FDI in India

A comprehensive e-com policy needed to boost FDI in India

    Multiple changes made in India’s ecommerce FDI norms to promote domestic retailers in the past few years are causing roadblocks to global ecommerce companies like Jeff Bezos-owned Amazon and Walmart-owned... Read more

Big retail groups foray into Indian online retail space

Big retail groups foray into Indian online retail space

     The Indian e-tail market is poised to reach nearly 300 million to 350 million shoppers over the next five years. Covid outbreak has exacerbated the consumers' need for safety and... Read more

Benetton India to open 40 new stores this year

Benetton India to open 40 new stores this year

     The Italian fashion brand, Benetton India plans to open 30 to 40 new stores in the Indian market this year and will also launch its online store in the second... Read more

Book on skill to be launched at International Craft Week

Book on skill to be launched at International Craft Week

     ‘RUNway to Skilled India’ the book authored by Dr Darlie O Koshy, DG & CEO, ATDC India will be launched at the International Craft Week’ on from February 18-21, 2021.... Read more

Benetton India to strengthen fashion footwear and innerwear segments

Benetton India to strengthen fashion footwear and innerwear segments

     Benetton India plans to strengthen its presence in the fashion footwear and inner-wear segments in the next three years in the country. The company expects footwear and innerwear segments to... Read more

A simple, standardized retail policy to help accelerate India’s economic growth

A simple, standardized retail policy to help accelerate India’s economic growth

       Despite a consistent 10 per cent annual growth over the past few years, India’s retail sector has not been able to achieve the same level of growth as Malaysia and... Read more

MOST POPULAR NEWS
Go to top

Follow Us On:

Face BookDealersForYou

TWDFUpublications

LNDFUpublications

YouTubeDFUpublications

 Copyright © 2020 DFU Publications. All rights reserved.