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.