Textile, garment exporters seek budgetary support to stay competitive
NEW DELHI: Concerned about the recent fall in exports of textiles and garments and rise in imports from countries such as Bangladesh, exporters are looking at the government to come up with more incentives in the forthcoming Union Budget to prop up the domestic industry.
The Textile Ministry has already formed a committee to look into the issues raised by the industry and exporters are hopeful that together with the Finance and Commerce Ministries, some assistance could be extended to the sector. Garments exports have suffered a huge blow with three consecutive months of fall since October 2017 and hopefully the industry’s problems would be looked into seriously and suitably addressed, pointed out HKL Magu,Chairman, Apparel Export Promotion Council (AEPC).
“Under the new GST and drawback rules, the reimbursements of taxes for the sector have gone down to the extent of 7 per cent (of the value of exports), whereas an additional incentive of 2 per cent was given to the sector in the foreign trade policy review in December. There is a shortfall of 5 per cent which has to be addressed in the Budget as it is pulling down exporters,” Magu added.