Import duty exemption to benefit Indian garment exporters | Policy News India
Home » News » Policy News » Import Duty Exemption To Benefit Indian Garment Exporters

Import duty exemption to benefit Indian garment exporters

Share: 
      Newsletter

READ MORE ON Apparel Exportimport dutyIndia Apparel IndustryPolicy News India

Man-made Fabrics

Image Courtesy: maxsungroup.com

Indian Government’s decision to allow additional (duty) benefit on import of specialty man-made fabric will immensely help in increasing Indian exporters’ competitive edge against Bangladesh and Vietnam by offsetting around 2-3 per cent import duties in the Western markets.

“India has been losing to competition from other nations like Bangladesh and Vietnam because of higher labour cost, absence of cluster manufacturing and inability to attract women workforce to reduce labour costs. These countries have started to pose a serious threat by banking on trade agreements and low manufacturing overheads, especially in the EU and the US,” said Ashok Rajani, Chairman, AEPC, which is organizing a nation-wide drive to spread awareness about the new special advance authorization scheme announced by the Centre last month.

It may be mentioned here that India’s ready-made garments exports in the fiscal year 2015-16 reportedly stood at US $ 17.1 billion whereas Bangladesh’s garments exports were valued at US $ 28 billion in the same period. Indian garment exporters pay on an average an import duty of 5 per cent in the EU while Bangladesh pay ‘zero’ duty. The additional reimbursement in the form of the Special Advance Authorization scheme, will help to bridge the gap.

Additionally, Federation of Indian Export Organizations (FIEO) has pointed out that duty-free import is allowed only on ‘specialty’ man-made fabric and not on all man-made fabrics, thus the move will not hit the domestic industry.

 

Have some news? Let us know on news@apparelresources.com

Recommended by Apparel Resources

India’s new textile policy aims to boost handicraft sector

The Textiles Ministry of India is planning to promote handicraft sector as international players have emerged as tough competitors for the sector. The new textile policy of India has been...

EPFO to discuss optional EPF for apparel, made-ups sector

The retirement fund body Employees' Provident Fund Organisation (EPFO) has decided to take up the issue of optional EPF for employees in apparel...

Indian Govt. to announce package for powerloom sector on April 1

Indian Government will announce a package for powerloom sector on April 1, this was informed by Union Textiles Minister Smriti Irani in Lok...

Telangana (India) CM directs to formulate plans for handloom weavers

K Chandrashekhar Rao, Chief Minister of Telangana (India) has directed Government officials to formulate plans for the welfare of handloom weavers in the...

Kerala (India) to rejuvenate textile industry

The State Government of Kerala (India) has decided to take all required steps to rejuvenate the crisis ridden textile industry in the state....

‘Saree’ out of excise duty ambit; brings cheers to textile traders

The Indian saree, whether it is made of six metres of fabric or undergone a designer makeover with embellishments and embroidery, will not...

Workshop in MP (India) on Special Package

A workshop was reportedly organized in Indian city of Indore in Madhya Pradesh by Textiles Ministry to elaborate about the measures suggested in...

GST Council clears SGST, UGST

After CGST (Central GST), IGST (Integrated GST) and Compensation drafts, the GST Council headed by the India’s Finance Minister Arun Jaitley has given its nod to State UTGST (Union Territory...

Indian Govt. to launch scheme in interest of powerloom weavers

Indian Government has announced to soon launch a scheme to protect the interest of powerloom weavers of the country, informed Minister of State...

India’s TEA launches medical insurance scheme for labourers

A new medical insurance scheme “Mediplus 365” with the payment of Re. 1 per day has been  launched for labourers, informed Tirupur Exporters...