By admin       2018-03-19

Accumulated credit under GST, capital goods investments affecting the industry’ Multi-stage and different tax slabs are affecting the man-made fibre (MMF) sector, according to the industry. Narain Aggarwal, chairman of the Synthetic and Rayon Textiles Export Promotion Council, told The Hindu that the MMF sector saw almost 9% growth in the domestic market every year. ‘Exports stagnant’ However, exports were stagnant for the last couple of years. The export target for this financial year was $7.5 billion. The Indian MMF sector was expensive in the international market by 5% to 8 % compared to the East Asian countries. This was mainly because of multi-level taxes that were not fully rebated, and high interest rates, he said. In China, the GST was 17% on textiles, while in Vietnam and Bangladesh it was 15%. In India, there were multiple rates for different fibres, Mr. Aggarwal said. Textiles are an integrated economy and the accumulated credit under GST from raw materials and capital goods investments are affecting the industry. It blocks investments. We have been speaking on these issues and the Ministry of Textiles has taken these up with the ministries concerned, he said. Mr. Aggarwal said the average annual wage rate in China was $8,000 and in Vietnam it was $3,000. In India, it was $1,500

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