The Apparel Export Promotion Council (AEPC) has welcomed the increase in
the rates of Merchandise Exports from India scheme (MEIS) to 4 per cent of
value of exports. As per a government
notification, the new MEIS rates are effective from November first this year.
Commenting on the increase in MEIS rates, AEPC Chairman, Mr. Ashok Rajani
said he welcomed the increase in the rates of Merchandise Exports from India
scheme (MEIS) and would like to thank the government this initiative.
The enhancement in MEIS rates will help in the fulfillment of orders for
the Christmas festival as it will result in easing the blocked capital. It will
help in the mitigation of the currency difference to some extent.
However the Industry is disappointed over the announcement of the RoSL as
the rate is far below than what the Industry has recommended and there has been
no consideration of the central taxes rebate in the announcement. The Industry
is witnessing a slowdown with jobs being lost and buyers migrating due to high
cost. Once the buyers find alternate resources it becomes difficult for us to
get them back. Therefore it is our humble submission to the government to
urgently restore the previous rates of RoSL and Duty drawback".
The apparel industry has been one of the worst hit by the GST as the
industry was earlier on the optional route. Also, the industry comprises
largely of SMEs who are finding GST compliance and capital blockage a severe
strain on their bottom lines. Today, the industry faces a double whammy of reduced
drawback and RoSL rates on one hand, and unchanged fabric and input costs on
the other, besides this, the hardening of the currency has eroded the
India’s apparel exports has shown a decline of 39 per cent (in US$ terms)
for the month of October’17 with an overall decline of 5.94 per cent in the
exports of apparels from India as per the last export data .To apprise the
government about the drastic situation, AEPC has been engaging with the policy
makers for an early resolution of the issue which is hampering the apparel
industry, post GST roll out. It has already made several presentations to the
Ministry of textile, Drawback Committee, NITI Aayog, Parliamentary Standing
Incorporated in 1978, AEPC is the official body of apparel exporters in
India that provides invaluable assistance to Indian exporters as well as
importers/ international buyers who choose India as their preferred sourcing
destination for garments.
In recent years AEPC has worked tirelessly in integrating the entire
industry - starting at the grass root level of training the workforce and
supplying a steady stream of man power to the industry; identifying the best
countries to source machinery and other infrastructure and brokering several
path breaking deals for its members and finally helping exporters to showcase
their best at home fairs as well as be highly visible at international fairs
the world over. With AEPC's expertise and all the advantages that India has, it
makes for a truly win-win situation - Indian exporters grow stronger each year
in their achievements, skills and proficiency, while international buyers get
superior solutions for their garment imports.