AEPC Chairman , Dr A Sakthivel compliments FM on steps for promoting investment and innovation in textile and apparel sector. Looks forward to clarity on policy support for the apparel sector


On behalf of apparel industry, I would like to thank Hon’ble Prime Minister of India, Hon’ble Finance Minister, Hon’ble Minister of Textiles & Hon’ble Minister of Commerce and Industry for announcing a positive, progressive, growth-oriented and forward-looking budget and also for fulfilling a long-standing demand of industry of abolishing the Anti-dumping duty on PTA. This will give the much needed boost to the entire textile & apparel value chain. 

The Apparel Export Promotion Council congratulates the Finance Minister on effectively addressing some of the key issues of the sector especially in the areas of Ease of Doing Business. A dedicated Investment Clearance Cell proposed to be set up will provide “end to end” facilitation and support, 9000 Km of economic corridors, quality standard orders as per PM’s vision of “Zero Defect-Zero Effect” manufacturing, National Logistics Policy with single window e-logistics market with focus on the generation of employment, National Logistics policy for making MSMEs competitive, Rs.1.7 lakh crore for transport infrastructure in 2020-21, simplified return with features like SMS based filing for nil return and improved input tax credit flow, enhancing digital connectivity, support for working capital, financing for MSMEs, 5-year exemption from audit for MSMEs & easing of tax filing for startups are some import steps towards easing the day to day functioning of MSMEs as also providing a conducive ground for investors.

The new NIRVIK scheme for higher export credit disbursements with greater coverage, reduced premium and simplified procedures for claiming settlements is a welcome step given the increased uncertainties in the global market. We look forward to furthering the details of the scheme.

For the Textile & apparel sector the National Technical Textiles Mission to be set up with four-year implementation period from 2020-21 to 2023-24 at an estimated outlay of Rs 1480 crore can position India as a global leader in Technical Textiles (Development of rainwear, sportswear, retarded Apparel, fire resistance garment). The proposed strengthening of Indian standards & Rs. 3000 crore for skill development in 2020- 21 are complementary steps in overall encouragement toward higher value & innovative products which can significantly contribute toward value-added growth in exports.

The council is studying the proposed Scheme for Revision of duties and taxes on exported products in which Exporters to be digitally refunded duties and taxes levied at the Central, State, and local levels, which are otherwise not exempted or refunded. This is an important area where there has been significant shrinkage in policy support in the last few months. The council is keenly looking forward to an effective substitution of the MEIS scheme that has been withdrawn for the sector. The apparel sector presently has the ROSCTL scheme for a refund of embedded taxes. However, the same is not adequate to provide a level playing field with other countries with preferential market access and to mitigate the still prevalent relatively high transaction cost.

Taxpayer Charter to be enshrined in the Statute will bring fairness and efficiency in tax administration which is laudable. The DDT removal will make India a more attractive investment destination. The personal Income tax benefits will boost purchase power and boost consumption. Demand growth will increase GST tax collection

We would also to thank Hon’ble Finance Minister for the proposed review of the Rules of Origin criteria for FTA countries as we can see a huge surge in import of garment from Bangladesh. However, a complementary step in this direction would be expediting the FTAs with EU, Australia, Canada & initiating FTA with the UK