The Apparel Export Promotion Council (AEPC) has called on the government to provide tax incentives and financial support to bolster domestic manufacturing and boost India’s exports. In a recent statement, the council urged for uniformity in the Goods and Services Tax (GST) and increased interest subsidies. Additionally, AEPC highlighted the need for tax concessions for apparel manufacturers adhering to international quality standards and compliance with Environmental, Social, and Corporate Governance (ESG).
One of the major concerns raised by the council is the reduction of interest equalisation rates for non-Micro, Small, and Medium Enterprises (MSMEs) under the interest equalisation scheme. AEPC has requested the government to increase the rates to 5 percent for all apparel exporters, emphasising that the high cost of capital is hindering the exporting community.
Furthermore, AEPC recommended a uniform 5 percent GST across the entire Man-Made Fibre value chain to address issues related to unutilized input credit and liquidity problems for MSME units. The council also proposed trimmings and embellishments under the Import of Goods at Concessional Rates (IGCR) duty rules.
AEPC Secretary General Mithileshwar Thakur expressed optimism for a positive response from the government, given the widespread industry consultations that preceded the suggestions. These measures, if enacted, would enhance the competitiveness of the Indian apparel industry and provide the necessary working capital for growth and development.
