Tirupur Exporters’ Association (TEA) has urged the government to introduce an alternative scheme with the same benefits of the Merchandise Exports from India. MEIS, a lifeline support given to exports including readymade garments, was removed from August 1, 2019 due to increasing pressure from the WTO, further to a complaint lodged by the US with the WTO dispute settlement body. The scheme (MEIS) was introduced for offsetting the infrastructural inefficiencies faced by exports of specified goods including readymade garments to provide a level playing field.

Raja M Shanmugham, President, TEA says, removal of MEIS incentive at 4 per cent given to the RMG sector will reduce its competitiveness in the global market making it difficult for the exporting units to sustain in the challenging business environment. He believes that as TEA is moving steadily to increase its revenue from Rs 12,500 crore in FY2013 to Rs 45,000 crore in FY2019, its original target to achieve Rs 1 lakh crore business by FY2020 will be impacted due to the removal of MEIS and other glitches and they may have to revise it to FY2022.