Govt allocates Rs 55 crore to set up Knitwear Technology Mission
Updated: Sep 27, 2013 02:25:10pm
New Delhi, Sept 27 (KNN) The government has allocated Rs 55 crore to set up a Knitwear Technology Mission (KTM) at Tirupur and Kolkata as proposed by the Apparel Export Promotion Council (AEPC) today.
The council has also proposed to enlarge the garment export basket by manufacturing knitted and woven garments from fabrics which are not widely available in India.
It has suggested to provide duty credit scrip on import of specialty fabrics at the rate of 5 per cent for export in 2012-13 and the entire 12th Five Year Plan.
It has also proposed to increase synthetic knitwear exports from India under the integrated skill development scheme (ISDS) by setting up of the innovative research and resource centre KTM.
Addressing the 34th annual general meeting, Chairman of AEPC, A Sakthivel said, “Apparel exports have picked up really very fast in first four months of fiscal year 2013-14. During April-July these fiscal exports have increased by 13 per cent in dollar terms compared to same period of previous year… Though, there has been decline in the share of traditional market in India’s total apparel export to world in 2012-13, however the share of non-traditional market for the same period has increased from 30 to 34 per cent.”
Earlier, in May the council discussed the issue of enhancing apparel exports under the Chairmanship of Cabinet Secretary Ajit Seth and other senior officials.
It was proposed to provide diesel for using in the generator sets at international prices to the garment exporters. Dependency on using captive generators by the garment exporters is increasing day-by-day owing to the shortage of electrical power which increases the cost of production substantially.
The AEPC has proposed to allow 24x7 export clearances of drawback shipping bills and import clearance from all ports. There should be a separate chapter for getting export credit at fixed 7.5 per cent, as it was done in the past.
Meanwhile, India’s textile exports were worth USD 33.09 billion in 2012-13 as against USD 34.4 billion in the previous year, with a decline of 4 per cent. Out of this, apparel exports were worth USD 12. 9 billion in 2012-13 with a decline of 6 per cent from previous year, said AEPC.
Both textile and apparel have been hit by the international economic crisis as growth in 2012-13 declined by 4 per cent for textile and 6 per cent for apparel compared to previous year.
This has affected the share of readymade garments in textile value chain which has reached 39 per cent in 2012-13 from 40 per cent in 2011-12.
Indian apparel exports has 3.2 per cent share in global readymade garments export in 2012 which remained stagnant compared to the previous year.
India is now the seventh largest apparel exporter in the world as Vietnam has overtaken India in 2012. China remained the largest suppliers with positive growth in 2012 followed by Bangladesh.
In July, the government has increased interest subvention rate from two to three per cent which will give extra relief to exporters on the working capital requirement.
For the current fiscal, the government has fixed USD 17 billion target for the apparel exports and if the same growth momentum continues with implementation of major recommendations, we may be quite close to the target, said AEPC. (KNN/GUNJ)
The council has also proposed to enlarge the garment export basket by manufacturing knitted and woven garments from fabrics which are not widely available in India.
It has suggested to provide duty credit scrip on import of specialty fabrics at the rate of 5 per cent for export in 2012-13 and the entire 12th Five Year Plan.
It has also proposed to increase synthetic knitwear exports from India under the integrated skill development scheme (ISDS) by setting up of the innovative research and resource centre KTM.
Addressing the 34th annual general meeting, Chairman of AEPC, A Sakthivel said, “Apparel exports have picked up really very fast in first four months of fiscal year 2013-14. During April-July these fiscal exports have increased by 13 per cent in dollar terms compared to same period of previous year… Though, there has been decline in the share of traditional market in India’s total apparel export to world in 2012-13, however the share of non-traditional market for the same period has increased from 30 to 34 per cent.”
Earlier, in May the council discussed the issue of enhancing apparel exports under the Chairmanship of Cabinet Secretary Ajit Seth and other senior officials.
It was proposed to provide diesel for using in the generator sets at international prices to the garment exporters. Dependency on using captive generators by the garment exporters is increasing day-by-day owing to the shortage of electrical power which increases the cost of production substantially.
The AEPC has proposed to allow 24x7 export clearances of drawback shipping bills and import clearance from all ports. There should be a separate chapter for getting export credit at fixed 7.5 per cent, as it was done in the past.
Meanwhile, India’s textile exports were worth USD 33.09 billion in 2012-13 as against USD 34.4 billion in the previous year, with a decline of 4 per cent. Out of this, apparel exports were worth USD 12. 9 billion in 2012-13 with a decline of 6 per cent from previous year, said AEPC.
Both textile and apparel have been hit by the international economic crisis as growth in 2012-13 declined by 4 per cent for textile and 6 per cent for apparel compared to previous year.
This has affected the share of readymade garments in textile value chain which has reached 39 per cent in 2012-13 from 40 per cent in 2011-12.
Indian apparel exports has 3.2 per cent share in global readymade garments export in 2012 which remained stagnant compared to the previous year.
India is now the seventh largest apparel exporter in the world as Vietnam has overtaken India in 2012. China remained the largest suppliers with positive growth in 2012 followed by Bangladesh.
In July, the government has increased interest subvention rate from two to three per cent which will give extra relief to exporters on the working capital requirement.
For the current fiscal, the government has fixed USD 17 billion target for the apparel exports and if the same growth momentum continues with implementation of major recommendations, we may be quite close to the target, said AEPC. (KNN/GUNJ)
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