Connect with us

Diwali was dim for fashion industry reeling under demonetisation, GST

Published

on

By Nivedita 

New Delhi, Oct 31 : Style, it would appear, never goes out of fashion. But the passion to spend on designer clothes and accessories took a beating in the past year, ever since the Narendra Modi government implemented the demonetisation policy. The introduction of the Goods and Services Tax (GST) in July added to the woes, say designers.

“Demonetisation was a wonderful move by the government, but it was badly executed. They did not see the entire scenario. It has disrupted the business (of fashion). There were a lot of times that my employees — like tailors and embroiderers — could not go to the bank. Demonetisation impacted them badly,” Rahul Mishra, a regular participating designer at the Paris runways, told IANS.

The stress, he says, was felt more by weavers, embroiderers, tailors and craftspersons. The introduction of GST on July 1 impacted the same set of people more than others.

“I am not against GST. We work with handmade clothes and labour is intensive. So if I supply merchandise worth Rs 1 crore, then 12 per cent needs to be paid upfront as GST. Next month, again if I am supplying, then I have to pay 12 per cent, so I have to pay so much to GST and then wait for the sale to happen.”

He says the government should encourage the handmade industry by bringing in separate laws for it. “I want to pay taxes on what I am selling because if I am not selling, then business is less, opportunity is less and so is potential for employment,” said Mishra.

A report by Investment Information and Credit Rating Agency of India (ICRA) stated that the Indian textiles and apparel industry, which accounts for almost 24 per cent of the world’s spindle capacity and eight per cent of global rotor capacity, has been struggling due to the impact of demonetisation and GST.

The report stated that the disruptions caused by demonetisation and transition to the GST regime has “narcotised the Indian apparel and fabric industry”.

Other designers say they are witnessing reduced business, but they are hopeful that the forthcoming wedding season may bring a touch of relief. Many feel that banning of Rs 500 and Rs 1,000 currency notes was a good move to weed out corruption in the country, even though it took its toll on the design world. GST only added to their troubles.

Designer Samant Chauhan is disappointed that the festive season failed to raise the shoppers’ spirit.

“I always knew that the market is slow and we will get good sales in Diwali. But things were not that great during the festive time either, with sales at less than half. There was no (big) party happening on Diwali, so why will people buy designer clothes. I think the note ban did have an impact on that (party culture).

He said that after demonetisation, prices of yarns and fabric went up. “Only those people survived who had systems (workstations and mills). There was a huge crunch of fabric as most of the weavers were in the bank getting their cash. When things normalised, the prices went up,” he added.

Sunil Sethi, President, Fashion Design Council of India (FDCI), the country’s apex fashion body, admitted that sales had slumped due to demonetisation and GST.

Read more…Goa blues: Demonetisation played party-pooper in India’s tourism capital

“I’m hoping that the business is going to be regularised in the near future. Certain amount of discipline has set in for both the customer and designer. However, there is no doubt that the volume of business has gone down, which is not a good sign. Hoping for the market to pick up soon,” Sethi told IANS.

Menswear designer Pawan Sachdeva echoed the sentiment. “The effect of demonetisation has lingered even after a year. The luxury market has faced a major slowdown. Even as the effects of demonetisation hadn’t lessened, GST was introduced as a new policy, slowing the market even more,” he said.

The major problem, according to him, was that cash flow declined sharply, resulting in slashing of up to almost 80 per cent of luxury sales. “This Diwali, the sales were extremely low as compared to previous years. It will take a lot of time for the market to recover at this rate,” Sachdeva said.

IANS

(Note Ban Series)

Cities

FIR lodged against Shia Waqf Board chief for hurting sentiments of Sunnis

Published

on

Mumbai, Dec 18 : An FIR has been registered at JJ Marg police station against Uttar Pradesh Shia Central Waqf Board chief Waseem Rizvi by a Mumbai based organisation Raza Academy, for allegedly hurting religious statements of Sunni Muslims.

Earlier, the case was lodged against Rizvi on the basis of a complaint of the Sahaba Action Committee at Lucknow ‘s Chowk Police station.

In the complaint, the Sahaba Action Committee claimed that Rizvi had offended the members of Sunni sect of Islam by his remarks over their Caliphs.

Continue Reading

India

India retaliates after Pakistan violates ceasefire along LoC in Poonch

Published

on

Pulwama encounter

Srinagar, Dec 18 : India is strongly retaliated after Pakistan Army resorted to heavy mortar shelling    along the Line of Control (LoC) in Poonch sector of Jammu and Kashmir on Tuesday.

Pakistan Army  violated ceasefire by indiscriminate firing with small arms, automatics, and mortars .The troops guarding the borderline retaliated and the  exchange of fire was continuing intermittently  when last reports came in. The unprovoked firing from Pakistan side began in the evening.

On December 12, an encounter broke out between militants and security forces in Sopore area.

Continue Reading

World

US pullout from INF Treaty may ruin arms control system: Putin

Published

on

Putin

Moscow, Dec 18 Russia will have to take additional measures to boost its security if the US withdraws from the Intermediate-range Nuclear Forces (INF) Treaty, Russian President Vladimir Putin said on Tuesday.

US withdrawal from the INF Treaty may ruin the entire arms control system, said the Russian President.

“Such a step will have the most negative consequences, and will noticeably weaken regional and global security,” Putin said while speaking at an extended meeting of the Russian Defence Ministry board, Xinhua news agency reported.

“In fact, in the long term, the talk is about the degradation and even collapse of the entire arms control architecture and the non-proliferation of weapons of mass destruction,” he added.

For a long time, the US has been using unsubstantiated accusations that Russia had violated its obligations under the treaty as a pretext to withdraw from it unilaterally, thus violating the treaty itself, Putin said.

He agreed that the INF Treaty did not involve other countries which have medium and shorter range missiles.

“But what prevents us from starting negotiations on their accession to the current agreement, or starting to discuss the parameters of a new treaty?” Putin said.

The treaty, in modern conditions, plays the role of a stabilising factor, which allows maintaining a certain level of predictability and restraint in the military sphere, he said.

He recalled that the INF Treaty signed in 1987 involved the elimination of medium-range and shorter-range (500-5,000 km) ground-based missiles. At the time, the USSR had no other missiles, while the US had sea-based and air-launched missiles.

Russia, since the signing of the treaty, has developed sea-based and air-launched missiles, which was the cause for Washington’s concern, Putin said.

According to Putin, it will not be difficult for Russia, if necessary, to create appropriate land-based systems as a response to the US withdrawal from the INF.

However, Russia is always open to any proposals and initiatives that lead to the strengthening of universal security including the prevention of a new arms race in the interests not only of Russia, but of the US and the whole world, Putin said.

Continue Reading
Advertisement

Most Popular