TEA raises concerns over discontinuation of certain schemes
New Delhi, 11 June (KNN) After the comments of Union Commerce Minister Piyush Goyal on dependence under subsidies given by the Central Government, Tiruppur Exporters Association (TEA) has raised its concern on proposal of government to remove subsidy given to the readymade garment sector. They feel it can decrease the competition of India in global market.
Speaking to the KNN India, President of TEA, Raja M Shanmugham said, ’’Indian Government is giving four percent incentive in export duties under Merchandise Exports from India Scheme (MEIS) scheme. Incentive is provided in the form of duty credit scrip to the exporter to compensate for his loss on payment of duties. If the scheme will be withdrawn by the Government, it will directly affect the garment exports of the country’’.
‘’Countries like, Bangladesh, Sri Lanka, Myanmar and Vietnam will come in competition was in our competition and withdrawal of scheme will bring our competition down in garment market. Importers will shift to other countries which will make difficult for us to get them back. These countries have free trade agreement. Their exports in America and Europe are duty free. We have given an application to the Commerce Ministry to look on MEIS scheme’’, he added further.
Tiruppur has more than 80% MSMEs of knitwear garment exporting units and are struggling to be in competition and self-sustainable. (KNN/VS)