The Global Trade Research Initiative (GTRI) has highlighted significant challenges facing the Indian garment sector, attributing its sluggish export growth to complex procedures and import restrictions. The think tank pointed out that issues with the Directorate General of Foreign Trade (DGFT), customs procedures, and domestic vested interests are major hindrances.

According to GTRI, one of the primary issues is the difficulty in obtaining quality raw materials, particularly synthetic fabrics. “Unlike in Bangladesh and Vietnam, where exporters have easier access to quality imported fabrics, Indian exporters face daily struggles. High import duties on fabrics, coupled with intricate DGFT and Customs procedures, force exporters to meticulously account for every inch and type of fabric imported,” said Ajay Srivastava, founder of GTRI.

The think tank’s analysis suggests that the cumbersome and bureaucratic processes involved in fabric importation are undermining the competitiveness of Indian garment exporters. The high costs associated with import duties and the detailed accounting requirements further exacerbate the problem, making it challenging for Indian companies to compete effectively in the global market.

GTRI’s findings call for a reassessment of the current trade policies and procedures to facilitate smoother and more efficient operations for garment exporters. Addressing these issues could potentially enhance India’s export performance in the garment sector, allowing it to better compete with other major exporting countries.