In a pivotal moment for India’s apparel industry, Sudhir
Sekhri, Chairman of AEPC, emphasized the sector’s potential
to gain a larger share in global apparel imports. He noted
that India’s credibility among global brands has surged due to
the ‘China Plus One’ strategy and challenges in Bangladesh.
The Union Budget, he stressed, offers a key opportunity for
long-term policy support to propel export growth.Mithileshwar
Thakur, Secretary General of AEPC, outlined strategies to capitalize
on supply chain shifts, urging investment in production
capacity, workforce upskilling, and labor reforms to maintain
growth momentum. Key demands of the RMG sector include:
Interest equalization scheme: Continuation and enhancement
of the interest equalization rate to 5 per cent to reduce the high
cost of capital.Tax reforms: Extension of the 15 per cent
concessional tax rate under Section 115AB of the Income Tax
Act for new garment units.Relaxation of Sec 43B(H): Exclusion
of exporters from strict payment deadlines, addressing cash
flow disruptions caused by buyers’ extended payment cycles.
Imports and procedures: Simplification of IGCR rules for trims
and embellishments, and a 10 per cent wastage allowance for
such imports. E-commerce: Increased export value caps to Rs
25 lakhs per consignment and extended realization periods of
12 months.Machinery duties: Removal of customs duties on
imported garmenting machinery to boost global
competitiveness. Sustainability initiatives: Introduction of a
Green Transformation Scheme offering long-term soft loans for
sustainability and green manufacturing upgrades.
AEPC’s demands underscore the need for structural support to
enable the apparel industry to meet global standards and
capture emerging opportunities.