(MENAFN- KNN India) Carpet exports registers decline, MSMEs term situation 'alarming'
New Delhi, Feb 17 (KNN) Commenting over the sharp decline in the volume of exports of carpets as revealed by the government data, the Micro, Small and Medium Enterprises (MSMEs) fear the alarming situation.
The Data from the government revealed exports of carpets fell by over 12.37 per cent in January as compared to the January of 2017.
In terms of value the carpet exports stood at 808.27 crores in the previous fiscal as against to the 708.26 crores of the present fiscal.
Talking to KNN, Mahavir Pratap Sharma, Chairman of Carpet Export Promotion Council (CEPC) said that the decline in exports is bringing in a lot of anxiety in the sector.
Explaining the concerns, Sharma said that the carpet industry is already facing a lot of competition from rival countries. In addition to the competition the overall global demand is not very favourable.
With such a situation prevailing, the carpet making units at home are further bearing the burden and effects of the new taxation making it impossible to conduct business.
Commenting over the impact of GST on the declining exports, Sharma said that there is an evident footprint of the new taxation across sectors.
He further said that the situation ahead doesn't seem very pleasing.
'The E-way bill is going to be another big hurdle for the sector as carpet making is spread across regions and it would become a logistic burden to absorb the norm for the movement of goods, he added.
Echoing along similar lines, Federation of Indian Exporters (FIEO) in a statement said that the labour intensive sector including garments couldn't perform well in exports due to the continuing effects of the new taxation in the country.
A slowdown in exports from labour-intensive sectors like garments, carpets, handicrafts and man-made textiles was primarily due to liquidity crunch as tax refunds have been getting blocked since the introduction of goods and services tax, FIEO said in a statement. (KNN/DA)
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