In duty drawback, a readymade short-term gain for SMEs: CRISIL

Export growth has slowed in recent years due to waning cost-competitiveness compared with China, Vietnam and Bangladesh

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CRISIL expects the export incentives announced by the government in December 2018 to materially benefit the readymade garments (RMG) segment. In fiscal 2018, the segment housed about 37,400 SMEs, accounting for a quarter of the market. These units undertake job work for branded apparel companies.

RMG is the largest segment of India’s textiles sector. The domestic market accounts for about 76 per cent of its revenues, and grew at 10 per cent in 2018, while exports fell two per cent. 

Export growth has slowed in recent years