With over 100,000 apparel and related units across India shutting shops for a day, the garment industry's one-day strike against the proposal of 10 per cent excise duty on branded apparels has cost it around Rs 130 crore.
What's more, some sections of the industry are also contemplating going on an indefinite strike if the duty proposal is not rolled back by the government.
“Kolkata itself had over 100,000 apparel manufacturers, dealers, employees and customers joining a protest rally in the city. Over 10,000 units remained closed in this region, including those of knitting, bleaching and dyeing. While the strike has been successful, we will fight it till the end. If the government doesn't respond positively to our demands, we might go for an indefinite strike,” said Federation of Hosiery Manufacturers Association of India Vice-President and West Bengal Hosiery Association Vice-President Sanjay Jain.
Along with the respective regional apparel associations in Ludhiana, Ahmedabad, Kolkata, Hyderabad and Bangalore, among other cities, the Clothing Manufacturers' Association of India (CMAI) had announced a one-day strike of garment manufacturers on Friday.
“The response from the industry for the strike was very encouraging. We had about 20,000 people in Mumbai joining the rally. Come Monday and big and small retailers will also join us in the protest by shutting shops for a day. We are positive that the government will roll back the proposed excise duty after such a reaction from the industry,” said CMAI President Rahul Mehta.
Apart from shutting down of units and taking out rallies, various associations made representations to the respective excise duty commissioners, said Ludhiana Knitters Association President Ajit Lakra. Apparently, members of 22 such associations in Ludhiana alone went on strike on Friday.
“After agriculture, textiles is the second biggest employer. The government should instead give more liberal hands so that more and more units can come in and generate employment. Plus, the government is already earning profits through VAT, while GST is on the way. Hence, the move to introduce another 10 per cent excise duty was uncalled for,” said Lakra.
The industry is already reeling under inflation and rising raw material prices. According to Jain, cost of apparels have gone up by 50 per cent in last one year, while yarn and cotton prices have risen by 100 and 150 per cent, respectively. “It is an anti-common man stand taken by the government. The country is already facing an annual inflation of 10 per cent. A sudden proposal of another 10 per cent excise duty simply doubles the burden since garments are one of the basic commodities,” Jain added.
