India (BBN)-Apparel Exports growth pattern has fallen in April 2015 in compare to the last year, the apex apparel exporters’ body – Apparel Export Promotion Council (AEPC) said in a press release on Tuesday.
The garment manufacturing industry believes that the Government will take necessary steps for boosting the exports, reports SME Times.
Chairman AEPC Virender Uppal in his reaction to the release of exports data for Readymade Garment (RMG) for the month of April 2015 stated that, “The rate of growth of RMG in April 2015 has fallen from 13.4 percent (April 2014) to 9.24 percent (April 2015) in dollar terms. In rupee term the growth has fallen from 24.7 percent to 13.58 percent, respectively.
The overall exports in April 2015 for RMG are USD 1444 million (Rs 9063 cr).
It is to be noted that the overall exports (all commodity) has fallen from USD 25.63 billion to USD 22.05 billion registering a growth of minus (-) 14 percent.

Chairman AEPC, applauded the resilience and hard work of Indian Apparel Exporters which could register a positive growth of 9.24 percent despite the subdued global economic cues resulting in weak demand and most exportable commodities registering negative growth.
Uppal, emphasized, there has been a vacuum in a policy support in the RMG manufacturing export industry.
He said, “In the recent FTP announcement, garment export sector got 2 percent reward only on 239 HS lines out of 398 lines.
The service sector got 5 percent scrip under Service Sector India Scheme. AEPC recommendations were for announcement of 5 percent Duty Credit Script for major market of USA, European Union etc. and for other countries a flat rate of 2 percent was recommended by AEPC.”
No Merchandise Exports from India Scheme (MEIS) has been announced to Latin America, West Asia, CIS Countries, Africa and Oceania countries.
The non-traditional markets which constitute around 35 percent share in India’s garment exports are poised to receive a setback due to withdrawal of the benefits of the Chapter 3 benefits.
The EU market constitutes 41 percent of the India’s RMG exports. Market conditions in major markets like EU, continues to be subdued.
Further, India is facing duty disadvantage of 9.6 percent compared to competing countries like Bangladesh and Pakistan who are having zero duty access under LDC/GSP+ status under EU GSP Scheme.
The USA constitutes 21.7 percent of India’s RMG exports and the market condition in USA is still on the path of gradual recovery.
The prospects of considerable improvement in the market are rather limited due to competition from countries like Vietnam, Mexico which have zero duty access under preferential treaties with USA.
Highlighting the demand of the garment manufacturing industry Chairman AEPC has requested Government to look into the following demands for boosting the exports of RMG:
From budgetary announcement – Inclusion of 2 percent fabric within 5 percent overall entitlement under EPC for improving fabric base under Customs Notification no. 10/2015-Cus dated 1.03.2015.

Support from Monetary Policy – Announcement of 3 percent interest subvention scheme w.e.f. 1.4.2014 to partially mitigate high cost of lending, which is hovering around 11 -12 percent interest rates, as compared to 4 – 6 percent in competing countries.
Support from FTP – Duty Credit scrip @ 5 percent to major markets like USA, EU, Canada, Mexico, Australia, Switzerland, Russian Federation, Ireland, Brazil, China, Republic of Korea, Norway, Chile, Turkey, Saudi Arabia, South Africa & Malaysia. Simplification in landing certificates as proposed by AEPC and even for one star exporter should be considered.
For Ease of Business – Actual implementation of 24 x 7 clearances of import and export be ensured by Customs.
FTA/PTA: The Government has also not given any indication about the finalization of India-EU FTA, CEPA with Canada, etc., which needs to be implemented on urgent basis so as to mitigate the duty disadvantage suffered by India vis-a-vis our competitors like Bangladesh, Cambodia, Vietnam, Pakistan etc. in the major markets.