Traders hail incentive, pledge to beat B’desh & Vietnam in export business

Welcoming the incentive package announced by the Centre for the garments industry, the traders have pledged to beat countries like Bangladesh and Vietnam in export business. According to the Apparel Export Promotion Council (AEPC), Indian exporters are all set to fill the space being vacated by China in the global market for clothing.

“With China already vacating space in the global market for garments, there is a huge opportunity for Indian exporters to fill the gap. The new incentives will make the garments sector in the country more competitive as exporters will be able to match the low prices offered by Bangladesh and Vietnam,” said AEPC chairman Ashok Rajani.

The new incentive, which includes enhanced duty drawback coverage with refund of state levies not being refunded so far, additional funding under the Technology Upgradation Fund Scheme (TUFS) and additional contribution towards the Employee’s Provident Fund (EPF) by the government, will help exporters fight competition from countries such as Bangladesh, said Sunaina Tomar, joint secretary in Textile Ministry. “The reforms have been initiated for the betterment of labour, like the government bearing the employers’ contribution of the EPF scheme for those earning less than Rs 15,000 per month, for the first three years. This will leave more money in the hands of the workers,” Tomar said.

Garment exports from India will increase by $30 billion over the next three years once the incentive package for the textile sector announced recently is fully implemented, the industry 

body stated.