IAAI lauds excise roll-back on branded clothing

The Intimate Apparel Association of India (IAAI) has

appreciated Finance Minister P Chidambaram’s move of rolling back excise duty from this financial year. This rollback comes at a time when the branded apparel industry is fighting hard to sustain itself in the face of price rise, import duties and inflation.

The decision of zero excise duty on fibre, yarn, fabric and finished garments also brings great relief to the intimate apparel industry which will gain immensely from the decision. It is a huge breather for the industry which has been going through a dull phase for the past two years, coping with the rising prices of raw material and competing with unbranded players in the industry. As Rakesh Grover, President, Intimate Apparel Association of India says, “IAAI, in close collaboration with CMAI, FOHMA and Ludhiana Knitwear Association, has been working ceaselessly for the past two years to seek removal of the excise duty. It brings immense pleasure to see that the sincere effort put by the association has finally paid off. We congratulate our entire fraternity for extending their whole-hearted support to the cause.”

The decision will not only give a boost to manufacturers and retailers of intimate ware, but is also expected to raise demand. It will also be a great boost to the skilled and unskilled labour force, especially women employees, who had been facing the danger of lay-offs in these unsettled times. For the apparel industry in general, the unprecedented rise in raw material costs especially yarns, led to an overall increase in production cost. Though the intimate apparel industry did not go through such adverse situation, it did experience drop in sales.