UNION BUDGET NATIONAL
NEW DELHI, INDIA
By IFAB MEDIA - NEWS BUREAU - July 23, 2024 | 178 4 minutes read
The Apparel Export Promotion Council (AEPC) is calling for significant policy interventions in the Union Budget 2024 to enhance India's standing as a global leader in the apparel sector. In a comprehensive appeal, AEPC has outlined several key recommendations aimed at bolstering the industry’s competitiveness and supporting sustainable growth.
Increased Interest Equalization Scheme Rate: AEPC advocates for a 5% rate for all apparel exporters over the next five years. This adjustment is intended to enhance the industry's global competitiveness and provide exporters with a substantial financial advantage.
Streamlined Import Regulations: The council proposes duty-free benefits for trimmings and embellishments under the Import of Goods at Concessional Rate (IGCR) Scheme. Additionally, AEPC seeks an extended utilization timeframe and the inclusion of courier mode shipments to facilitate smoother import processes.
GST Rationalization: AEPC is pushing for a uniform 5% Goods and Services Tax (GST) across the entire textile and apparel value chain. This proposal aims to standardize tax rates for both man-made fiber (MMF) and cotton products, reducing complexity and improving cost efficiency.
Support for Sustainable Practices: The council recommends subsidized loans for organic and locally sourced inputs, investment in green technology, and incentives for traceability. These measures are designed to promote sustainability within the industry and encourage the adoption of environmentally friendly practices.
Boosting Domestic Manufacturing: AEPC calls for relocation incentives, direct tax benefits for adherence to Environmental, Social, and Governance (ESG) standards and quality compliance, and budgetary support for "Made in India" branding initiatives. These steps are aimed at strengthening domestic manufacturing capabilities and enhancing the global reputation of Indian apparel.
Technological Upgradation: To support technological advancement, AEPC proposes reduced customs duties on high-end textile machinery for a limited period. This move is intended to facilitate technology upgrades, with a strategic tariff increase planned thereafter to encourage domestic textile machinery manufacturing.
AEPC's proposals reflect a strategic vision for the Indian apparel industry, focusing on competitiveness, sustainability, and technological innovation. By addressing these key areas, the council believes that Budget 2024 can serve as a pivotal moment for the sector, driving growth and reinforcing India’s position on the global stage.
#Budget2024 marks a crucial opportunity to elevate India’s apparel industry to new heights, and AEPC is committed to working with policymakers to realize these transformative goals.