Page 24 - TEXtalks October/November 2021

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Indian Textile Sector

disappointed on higher GST

The Centre’s notification on higher GST rates for Clothing Manufacturers Association of India Chief
several textile and apparel items from January 2022 Mentor Rahul Mehta said the notification was both
has come as a blow to micro, small and ‘disappointing and distressing.’ The move would
medium-scale textile and clothing units, with lead to higher prices for the end consumer when
industry groups asserting that the move will push up high raw material costs had already impacted
prices for consumers and spur inflation. The prices. In the last two months, the industry had
made several representations to the government not
unfortunate notification was based on the to change the rates and would continue to do so.
recommendations of the GST Council. Therefore, Industry sources observed that almost 90% of fabric
not a complete surprise, industry groups were production in the country was in the unorganized
disappointed that their representations to the sector. Increasing the rate to 12% for fabrics would
government to maintain the status quo or bring the hit the power loom and handloom weavers. The
entire textile supply chain under 5% rate had not textile sector was sure to require additional working
been heeded. capital now.

Vietnam's

garment exports

to touch $38

billion

Vietnam Textile and Apparel Association (VITAS) is hopeful that Vietnam may gain $6 billion from garment and
textile exports in November and December, totaling $38 billion in this year's turnover. According to VITAS, the
loosened social distancing in October, the country's garment and textile production, especially in Ho Chi Minh
City and other southern localities, quickly recovered, with over 90 percent of workers returning to factories,
causing the production to go at full swing.

Garment and textile export turnover rose nearly 11% year-on-year to $32 billion in the first ten months. Specifi-
cally, yarn export stood at $4.5 billion. Vietnam is estimated to make a yarn export turnover of some $5.3
billion and $2.4 billion for cloth this year. The country's garment and textile export turnover would surge to
$43-43.5 billion next year amid increasingly enormous global demand, VITAS predicted, urging its members
to further tap markets like the U.S., European Union. Last year, garment and textile exports dropped by 9
percent to $35 billion. Vietnam, though a small country, is a significant player in the textile industry. They are
known specifically for their cheap ready to wear clothing.

October/November 2021