Union Budget 2024: Apparel exporters seeks fiscal incentives to boost exports

New Delhi: Apparel exporters on Monday sought fiscal incentives including cut in customs duties and fund support in the forthcoming Budget to boost the outbound shipments from the sector.

Finance Minister Nirmala Sitharaman is scheduled to present the Budget on July 22.

The Apparel Export Promotion Council (AEPC) suggested the government should increase the rates under the interest equalization scheme to 5 per cent for all the apparel exporters for a period of five years.

"This will increase the apparel industry's competitiveness in the international market," AEPC Chairman Sudhir Sekhri said in a statement.

He also said that all types of trimmings and embellishments should be covered under Import of Goods at Concessional Rates of Duty Rules.

Sekhri said that with the complete value chain and commitment for compliance driven quality products, India is all set to unleash its prowess in the textiles and apparel sector by being a significant global player.

"The long-term policy for garment industry related schemes will provide stability in the policy regime and will be a pro-active step to help garment exports from the country," he added.

He also asked for reduction in the custom duty on high-end textile machinery; direct tax concessions to apparel manufacturers adopting ESG (environmental, social, and governance) and other international quality norms and compliances; and budgetary support for branding and marketing of made-in-India products.

"The custom duty should be brought down to zero per cent for three years to enable technology upgradation. Subsequently, a high tariff wall should be raised on import of textile machinery to encourage foreign investment in textile machinery manufacturing," he said.

Mithileshwar Thakur, Secretary General, AEPC, added that this labour-intensive sector needs the right push and all the support from the government as it holds the key to the generation of massive employment opportunities for the youth and empowerment of women.