In April 2018, India’s garment exports reached US$13.4, a decrease of 22.76% compared with the value of US$1.74 billion in the same period last year. Because of the introduction of the Goods and Services Tax (GST) and the tariff preferences enjoyed by rivals such as Vietnam and Bangladesh, Indian garment exporters may not reach the new fiscal year export target.
It is reported that during the past three fiscal years, shipments of Indian textiles and clothing have not reached the annual target set by the government. According to the person in charge of the Garment Export Promotion Council of India, due to the declining trend in global apparel consumption, India’s garment exports amounted to US$ 16.71 billion in the fiscal year 2017/2018 on March 31, which was the same as last year’s export value of 17.38 billion. The US dollar fell by 3.83%. After the implementation of GST, the effective tax refund for the industry has also declined, which has affected export profits. The association hopes that the government will compensate the industry during the transition period.