SME Times News Bureau | 19 Jul, 2019
Union Minister of Textiles Smriti Zubin Irani
on Friday said that exports of apparel increased 2 percent in the last five
years from 2014-15 to 2018-19.
In a written reply in the Lok Sabha
Irani said as per DGCIS data, export of apparel has increased by 2%
from Rs 102,943 crore in 2014-15 to Rs 112,701 crore in 2018-19. In dollar
terms garment exports have been valued around 16 to 17 billion USD.
India faces competition from
Bangladesh and Sri Lanka which have competitive manufacturing costs and enjoy
duty free access to major markets like EU.
To identify issues and
solutions to enhance exports, Ministry of Textiles has regular interface with
various Ministries/Departments, industry associations and Export Promotion
Councils.
Some garment units have set up
units in Ethiopia due to zero duty access for Ethiopian exports in US and EU
markets and due to incentives being offered for investments there.
Government has taken various
initiatives to promote the garment sector as follows, such as a Special Package
was announced for garments and made-ups which offersRebate of State Levies
(RoSL), labour law reforms, additional incentives under Amended Technology
Upgradation Fund Scheme (ATUFS), enhanced duty drawback coverage and relaxation
of Section 80JJAA of Income Tax Act.
She added thata new Scheme for
Rebate of State and Central Taxes and Levies (RoSCTL) was announcedw.e.f 7th
March 2019.
Rates under Merchandise
Exports from India Scheme (MEIS) were enhanced from 2% to 4%, the minister
added.
Government has enhanced
interest equalization rate for pre and post shipment credit for exports by
MSMEs of textile sector from 3% to 5% w.e.f. 02.11.2018, she added.
Benefits of Interest
Equalization Scheme has been extended to merchant exporters from 02.01.2019
which was earlier limited to only manufacturer exporters, the minister said.