Issues like complex procedures of DGFT and Customs, import restrictions are holding up the export growth of the Indian garment sector, think tank GTRI opines. At the root of the exporters’ problem is difficulty in obtaining quality raw fabric, particularly synthetic fabric.
GTRI Founder Ajay Srivastava says, in Bangladesh and Vietnam, exporters easily access quality imported fabrics, but Indian exporters struggle due to high import duties on fabrics, coupled with DGFT and Customs intricate procedures, making exporters meticulously accountable for every inch and type of fabric imported.
Ajay adds, the imposition of mandatory quality norms on raw materials like polyester and viscose staple fibres is complicating imports as the BIS (Bureau of Indian Standards) slowly registers foreign suppliers, and this delay compels exporters to buy from domestic monopolies at higher prices.
