Petition Closed

Subject: Plight of Textile Manufacturers [SMEs] in India.

This petition had 21 supporters

Two key central government initiatives i.e. Make in India and Goods and Services Tax [GST] were considered boon by many analyst, but what’s ailing the textile industry still?

Let’s take an example of Towel Manufacturers in India, who strive to produce high quality and economical products and compete hard againt imported towels, mostly imported from one nation, i.e. China.

Two key issues, detailed below, have hit Towel Manufaturers extermely hard but Indian government/officials/authorities seem to have turned blind eye to issues plaguing this sector and therefore, it can be assumed, that they are hell-bend to cause un-natural death of Make in India dream, atleast as visbile for Towel/Textile Manufacturers or similar SMEs:

1) Towel Imports, specially face/small towels etc, are manipulated and cleared @1/4 of the actual cost, making them extermly low cost for importers. Thus, making Towel Manufacturing in India expensive and non-competitive.

2) With GST roll out in July’17, industry expected import duty gap to widen and therefore support Make in India dream even more strongly but IMPORT DUTY on towel, that was at ~29% earlier as excise, cvd, customs etc and non-refundable, has effectively come down to ~11% as 18% GST [out of total 29%] is now REFUNDABLE.

So the situation for Indian domestic industry is worst now, defeating our MAKE IN INDIA dream. Government shall walk the talk and protect Make in India dream rather than pushing Towel/Textile Manufacturing Industry towards complete collapse. Other industries e.g. Toy and Electronic goods are also facing similar fate.

This petition is to awaken the policy makers so that they can ensure full compliance to law and look at import duty reduction done and protect textile/toys/similar SMEs and Make in India dream.

Vishwa Mitra

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