Apparel exports can treble on central incentive: AEPC
The apparel industry will be able to treble exports within three years if the Centre allows it to utilise 15 percent of the export turnover to import raw materials such as synthetic fabrics that are not available in the country, AEPC has said.
Coimbatore: The apparel industry will be able to treble exports within three years if the Centre allows it to utilise 15 percent of the export turnover to import raw materials such as synthetic fabrics that are not available in the country, AEPC has said.
The industry is on the revival path - from the crisis- ridden past three years - and 2013 will augur well for textile exports, particularly apparel and knitwear garments, going by increased orders in the last two months, Apparel Export Promotion Council (AEPC) Chairman A Shaktivel told reporters last night at Tirupur.
The heads of export bodies will meet the Textile Ministry on January 7 in Delhi and discuss the issue of import of raw materials such as synthetic and polyester fabrics and yarn, which are not available in India, Shaktivel said.
He was speaking on the sidelines of an interaction with major textile connected associations organised by AEPC.
Shaktivel said it was difficult to import the materials under Advance Linked scheme as small exports will not be able to cope with it.
As such the industry was getting 5.33 percent duty drawback on fabrics and 3.3 percent on yarn, he said, adding that once polyester fabrics and yarn are available, the industry will tap the winter garments market, which was very negligible now.
The overall impact would be that there would be a sharp increase of export by three times in the next three years from the present USD 14 billion, he said.
Tirupur too, which had turnover of Rs 13,500 crore in 2012, will witness similar growth, said Shaktivel, who is also President of Tirupur Exporters' Association.