New Delhi, Feb 1 (KNN) Conveying his thoughts on the extension of Emergency Credit Line Guarantee Scheme (ECLGS) and increasing the coverage by Rs 50,000 crore, Narendra Goenka, Chairman of Apparel Export Promotion Council (AEPC) said this would bring some relief to apparel exporters which fall under the MSME category.

He called the budget growth oriented which will create opportunities for investments, exports and employment while simplifying the procedures.

Goenka also appreciated the government for announcing a 35 per cent increase in the capital expenditure to Rs 7.5 lakh crore for FY23 saying that it will accelerate overall growth of the economy through investments amid disruptions due to intermittent lockdowns.

“Trimmings and embellishments like fasteners, inlay cards, linings and interlinings, laces, etc., that are used for branding and are nominated by the buyers were allowed duty free earlier. Most of the exporters import these items because of the buyers’ nomination and need to be sourced from defined sources within sharp timelines. Resumption of the facility will help apparel exporters make their products more internationally competitive. This is a big relief for small exporters,” Goenka said.

The extension of the benefit of 15 per cent tax for the newly incorporated manufacturing units by one more year to March 2024 will be instrumental in bringing in fresh investments, he said. He further stated that this would specifically help in bringing in new investment in the new units under Production Linked Incentive (PLI) scheme for MMF garments, MMF fabrics and technical textiles.