AEPC seeks incentives to increase garment exports
Updated: Mar 22, 2013 02:20:44pm
New Delhi, Mar 22 (KNN) With an aim to increase garment exports to USD 30 billion during the next three years, Apparel Export Promotion Council (AEPC) has submitted a proposal to Commerce Minister, Anand Sharma asking for various incentives.
In his proposal, AEPC, Chairman, A Sakthivel has demanded a separate chapter for getting export credit at a fixed rate of 7.5 per cent as done in the past. In addition he has asked for duty credit scrip to be allowed at 5 per cent of garment exports for the export performance in the year 2012 -13, for issuance of duty credit scrip from the year 2013 -14 and onwards.
The meeting with the Commerce Minister took place ahead of the Foreign Trade Policy that is scheduled to be announced in the first week of April.
Sakthivel also asked for 15 per cent investment allowance which is now available for projects of Rs 100 cores and above. Further, he requested that the threshold limit for the apparel sector be reduced to Rs 10 crore.
While thanking Sharma for removing excise duty on fabric and readymade garments, the AEPC Chairman proposed that the zero duty EPCG (Export Promotion Capital Good) scheme be extended in the 12th five year plan. The zero duty EPCG scheme, he said, should be made available to apparel exporters who have availed the benefit of TUFS (Technology Upgradation Fund Scheme).
On account of the proposal for Foreign Trade Policy, Sakthivel has recommended that the scheme announced in FTP be extended by three years up to the year 2015-16, so that exporters can plan their marketing strategies on a long term basis. FTP should be more inclusive and flexible for garment exporters, he said.
Stressing the need for non-traditional markets to be tapped and to reduce dependence on EU/USA, he proposed an increase of duty scrip from 3-4 per cent to 5 per cent for the non- traditional markets. However, in traditional countries like EU and US, he recommended that duty scrip be increased from 2 per cent to 3 per cent.
India's apparel exports are expected to be flat at USD 14 billion in 2012-13 as there is a slowdown in demand in markets like the US and Europe. (KNN)
In his proposal, AEPC, Chairman, A Sakthivel has demanded a separate chapter for getting export credit at a fixed rate of 7.5 per cent as done in the past. In addition he has asked for duty credit scrip to be allowed at 5 per cent of garment exports for the export performance in the year 2012 -13, for issuance of duty credit scrip from the year 2013 -14 and onwards.
The meeting with the Commerce Minister took place ahead of the Foreign Trade Policy that is scheduled to be announced in the first week of April.
Sakthivel also asked for 15 per cent investment allowance which is now available for projects of Rs 100 cores and above. Further, he requested that the threshold limit for the apparel sector be reduced to Rs 10 crore.
While thanking Sharma for removing excise duty on fabric and readymade garments, the AEPC Chairman proposed that the zero duty EPCG (Export Promotion Capital Good) scheme be extended in the 12th five year plan. The zero duty EPCG scheme, he said, should be made available to apparel exporters who have availed the benefit of TUFS (Technology Upgradation Fund Scheme).
On account of the proposal for Foreign Trade Policy, Sakthivel has recommended that the scheme announced in FTP be extended by three years up to the year 2015-16, so that exporters can plan their marketing strategies on a long term basis. FTP should be more inclusive and flexible for garment exporters, he said.
Stressing the need for non-traditional markets to be tapped and to reduce dependence on EU/USA, he proposed an increase of duty scrip from 3-4 per cent to 5 per cent for the non- traditional markets. However, in traditional countries like EU and US, he recommended that duty scrip be increased from 2 per cent to 3 per cent.
India's apparel exports are expected to be flat at USD 14 billion in 2012-13 as there is a slowdown in demand in markets like the US and Europe. (KNN)
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