Goods And Services Tax Led To 40% Decline In Indian Apparel In October
India's garment exports dropped sharply, falling 40.75% in October 2017 to Rs 53,980.8 crore, compared with 91.7575 crore in the same period of last year. According to the Indian Foreign Trade estimates released by the Ministry of Industry and Commerce, this includes all textile garments.
Exports of man-made textiles, including yarn, fabrics and finished goods, fell by 8.26% to Rs. 2309.57 million compared with Rs 25.1751 billion in October 2016.
However, exports of cotton textiles, including yarns, fabrics, finished products, handmade textiles, rose 2.21% to Rs 536.997 from Rs 525,396 crore in the same period last year.
Exports of jute products in October 2017 were Rs 15.028 billion, up by 6.29% over the same period of the previous year, while exports of carpet decreased by 33.03% to Rs.6672 billion.
Overall, India exported goods valued at Rs.15032.595 billion in October 2017, compared with Rs.1,592.673 billion in October 2016, a decrease of 3.59%. This ended the trend of export growth for 13 consecutive months. The implementation of the Goods and Services Tax (GST) led to a shortage of working capital for exporters, which was the main reason for the decline in exports.
In 2017-2018 and April-October, the accumulated value of exports was 1,097,858.868 crore, while 10,392,975,900 crore was up 5.63% over the same period of last year.
Meanwhile, the import value of October 2017 was Rs 24,156.231 crore, a 4.91% premium to the import value of Rs.2,3024.681 crore in October 2016. The total value of imports for the April-October period of 2017-18 is 1,653,431,500,000 rupees, up 17% from the same period of last year to 1,403,915,150,000 rupees.