Letter Written by GEAR to Mnister of State Finance and Corporate Affairs.
Mr. Anurag Singh Thakur
Hon’ble Minister of State Finance & Corporate Affairs.
Government of India
Room No. 138, North Block
Subject : NO SUBSIDIES NO COMPENSATIONS REQUIRED if the Two Basic mantras Measures are sanctioned to revive the Indian Garment manufacturing industry (MSMEs) from the setback of COVID-19.
The Garment Industry basically a Cluster of MSMEs units engaged in both the Exports & Domestic Sales of Garment which is amongst the worst COVID -19 effected industry in terms of business (Exports & Domestic) Losses to the extent of over USD 4+ billion due to the worldwide impact of the Corona & the Lockdowns.
The sector urgently needs a meaningful stimulus package from the Government.
We the Garment Exporters Association of Rajasthan (GEAR), Jaipur representing the Garment Exporters Fraternity from Rajasthan suggest a “ Two Basic Mantras” which will be helpful in the long term sustainability of the Industry (MSMEs) and its employment.
Sir, The Garment Industry is a Cluster of MSMEs. Majority of the units are registered SMEs and enjoy MSME benefits as Priority Sector. During this COVID-19 pre & post impact period the Garment Industry MSMEs are & will remain the worst effected Industry and their needs are required to be addressed separately independent of other industry to make the Garment Industry MSMEs Survive and Revive.
MANTRA I :
Support from Domestic Branded Retailers & Chain stores & Buyers:
We have approached Hon’ble Union Textile Minister to initiate with the Domestic Branded Retailers, Chain Stores & Buyers to support the Garment Industry in this time of COVID impact.
We request your good offices to kindly instruct and arrange with the Textile Ministry to initiate with the Major Domestic Branded Retailers, Chain Stores and Buyer namely Westside; Pantaloon; Big Bazar; Max; Landmark Group and many others Domestic Retail Chain Stores operating in India to extend their business support to the Garment industry.
Necessary Instructions, Advisory or Official note should be issued to these Major Domestic Branded Retailers, Chain Stores and Buyer to help sustain the Garment Industry with following supports :
MANTRA II : INCOME TAX :–
We share a proposal cycle for the collection of Income Tax, post the Covid-19 period.
The above proposal has been put forward keeping in mind to provide sustainability support and Assured Business Future to MSMEs with following considerations :
The suggested Income Tax structure is will not only boost the financial strength and confidence of the MSMEs but will STRIDE them over the needs of all Subsidies & Compensations. Give us a challenge n the Industry will fight to come out with fine colors of success with your support.
There should be no limits to business and economy boost which will drive the Foreign Exchange Reserves to increase to better level than pre COVID -19 conditions.
We are confident that the Sanctions of the above suggested Exemptions & Support will enable the MSMEs to Re-establish and Return to a Better Status. These sanctions will prove to be an Investment to the Nation – a Long Term Investment with Assured & Positive Results at the end of the period.
We are confident and repose our trust in your good offices
Expecting to receive early and timely sanctions.