Apparel Exporters Seek Fiscal Boost in Upcoming Budget

Apparel exporters are advocating for fiscal incentives, including reduced customs duties and increased fund support, ahead of the upcoming Budget presentation. The Apparel Export Promotion Council (AEPC) has proposed several measures, such as raising interest equalization rates and reducing customs duties on high-end textile machinery, to enhance the sector's global competitiveness.

Apparel exporters on Monday urged the government to provide fiscal incentives, including reductions in customs duties and enhanced fund support, in the forthcoming Budget to stimulate the sector's outbound shipments.

With Finance Minister Nirmala Sitharaman set to present the Budget on July 22, the Apparel Export Promotion Council (AEPC) has recommended increasing the rates under the interest equalization scheme to 5% for all apparel exporters for five years.

AEPC Chairman Sudhir Sekhri stated, "This will increase the apparel industry's competitiveness in the international market."

He also emphasized that all types of trimmings and embellishments should benefit from Import of Goods at Concessional Rates of Duty Rules.

Sekhri highlighted India's readiness to become a significant player in the global textiles and apparel market, given its full value chain and commitment to compliance-driven quality products.

He asserted that long-term policies for garment industry schemes would provide stability and support to exporters.

Sekhri also recommended reducing customs duties on high-end textile machinery and offering direct tax concessions to apparel manufacturers who adopt ESG norms. He called for budgetary support for branding and marketing of made-in-India products.

"Custom duties should be reduced to zero percent for three years to enable technology upgrades. Following this, a high tariff wall should be established to encourage foreign investment in textile machinery manufacturing," Sekhri said.

Mithileshwar Thakur, Secretary General of AEPC, also noted that this labor-intensive sector needs comprehensive government support to generate extensive employment opportunities for the youth and empower women.

(With inputs from agencies.)