Apparel Export Promotion Council (AEPC) urges government to include tax incentives for industry in upcoming budget

The Apparel Export Promotion Council has urged the central government to include tax incentives for the Indian garment industry in its upcoming budget as a boon to micro, small, and medium enterprises and to continue the sector’s upward growth trajectory in the global market. 

“Apparel exporters body AEPC on Saturday urged the government to announce tax incentives, including removal of a provision requiring payments to MSMEs within 45 days to claim deductions and customs duty exemption on garment machinery imports,” announced the Apparel Export Promotion Council on Facebook. “The Apparel Export Promotion Council (AEPC) has also requested that an interest equalisation rate of 5% be announced in the budget, scheduled to be unveiled on February 1 by Finance Minister Nirmala Sitharaman.”

The AEPC is keen to simplify the process of importing goods such as trims and embellishments under the Import of Goods at Concessional Rate scheme, needed for their use in garment production. By asking for more liberal e-commerce export regulations, the AEPC aims to enable Indian businesses to more easily reach global customers through online sales. 

“The Indian apparel sector is on a high growth trajectory and has the potential to outpace global competitors with upscaling of production capacity, channelising investments into the sector, upskilling the workforce, and implementing labor reforms,” said the AEPC’s secretary general Mithileshwar Thakur, India Retailing reported. 

The AEPC works to boost apparel exports from India by advocating for the industry and holding trade events. With its head office in Gurgaon, the AEPC also shares information with Indian businesses to help them to take advantage of schemes for the sector. 

“High import duties make Indian garment exports less competitive compared to countries like Bangladesh and Vietnam,” announced the industry body. “AEPC recommends not only continuing existing exemptions but also reducing the customs duty to zero on remaining garmenting machinery to enhance the sector’s efficiency.”