The Apparel Export Promotion Council (AEPC) has said that the cap of Rs 50 crore should be removed under the Amended Technology Upgradation Fund Scheme (ATUFS) in the upcoming Union Budget 2017-18 in order to attract more investments in the textile industry. It has also suggested the government to avoid changing drawback benefits and procedures under the GST regime.
Ashok Rajani, Chairman, AEPC said that the industry has been benefitted by the Rs 6,000-crore special package for the garment industry announced in June 2016 which aims at facilitating new investment, exports and employment. He further said that the AEPC expects the budget to supplement it taking the introduction of GST also this year.
He also said that the companies that are scaling up should be given some sort of incentive and the condition of term loan component of 50 per cent should not be imposed since there is no interest subsidy for the loans being taken from the banks. Clubbing of license should also not be permitted under annual advance license for the enhanced Duty Drawback Scheme, he observed.
Talking about the apparel market, Rajani said that the global apparel markets have been stagnant since 2015. For India, the growth in 2015-16 was a nominal 0.2 per cent while in 2016-17 it is expected to be similarly modest. However, India's domestic market is growing, which is an opportunity for the apparel manufacturers.