AEPC Chairman welcomes double digit growth in exports

Apparel, Footwear, Fashion

AEPC Chairman welcomes double digit growth in exports

Chairman of Apparel Export Promotion Council (AEPC), A Sakthivel has congratulated Minister of Commerce & Industry, Anand Sharma for the double digit growth in exports which was US$ 12.97 billion. His sustained help to the export sector through positive policy measures and supportive intervention from time to time has yielded positive results. The AEPC chairman also congratulated the minister for efforts that led to the reduction in trade deficit, which stood at US$ 10.9 billion for the month of August 2013. It will surely help to ease out current account deficit.

Measures like: for enhancing the interest subvention from 2% to 3% in Readymade Garment Sector, MLFPS extension for exports to USA and EU in respect of items falling., Harmonized Zero Duty EPCG and 3% EPCG Scheme into one scheme which will be a Zero Duty EPCG Scheme covering all sectors, exporters who have availed benefits under Technology Upgradation Fund Scheme (TUFS) administered by Ministry of Textiles, can also avail the benefit of Zero duty EPCG Scheme, Norway has been added under Focus Market Scheme and Venezuela has been added under Special Focus Market Scheme, Duty Credit Scrips issued under Focus Market Schemes can be used for payment of service tax on procurement of services within the legal framework of service tax exemption, Incremental Export Incentivisation Scheme, etc.

The garment industry could achieve US$ 12.92 billion exports in 2012-13 and modest 13% growth in April – July, 2013 due to policy support given by the government, said Sakthivel. Measures like- for enhancing the interest subvention from 2% to 3% in readymade garment sector,MLFPS extension for exports to USA and EU in respect of items fallingin Chapter 61 and Chapter 62 of ITC (HS), the Zero Duty Export Promotion Capital Goods (EPCG) and 3% EPCG Scheme have been harmonized in one scheme to be known as Zero duty EPCG Scheme covering all sectors, exporters who have availed benefits under Technology Upgradation Fund Scheme (TUFS) can also avail the benefit of zero duty EPCG Scheme.

Norway has been added under Focus Market Scheme and Venezuela has been added under Special Focus Market Scheme, Duty Credit Scrips issued under Focus Market Schemes can be used for payment of service tax on procurement of services within the legal framework of service tax exemption, Incremental Export Incentivisation Scheme and more.Sakthivel also applauded the efforts made by the Union Textiles Minister K S Rao for boosting exports.

From the last four months garment exports are growing at the rate of about 11%, to keep the momentum of growth rolling it is important that manufacturing sector starts picking fast. “This is an employment critical sector and government intervention is a must to sustain the growth moment and reach the target set by the government. We have submitted our list of demands at BOT meeting held recently, which includes: duty credit scrip at the rate of 5%, increasing the support under MAI, implementing the gold card scheme, separate chapter for getting export credit for the banking sector at fixed rate of 7.4% and Market Linked Focus Product scheme may be increased to from 2% to 3% and newer countries to be added and currency swap to explore the possibility of using local currency for trade with major trading partners, as well as, changes in service tax, income tax and labor laws.”

Sakthivel has expressed optimism that India trade growth has the ability and potential to bring the Indian economy back on track. Easy availability of credit and availability of specialty fiber for domestic use still remains a bottleneck. Exports during August, 2013 were valued at US$ 26135.94 million, which was 12.97% higher in dollar terms than the level of US$ 23134.47 million during August, 2012. Cumulative value of exports for the period April-August 2013 -14 was US$ 124426.07 million as against US$ 119771.91 million, registering a growth of 3.89 % in dollar terms over the same period last year.

Imports during August, 2013 were valued at US$ 37053.85 million representing a negative growth of 0.68% in dollar terms and over the level of imports valued at US$ 37307.27 million in August, 2012. Cumulative value of imports for the period April-August, 2013-14 was US$ 197792.14 million as against US$ 194442.45 million, registering a growth of 1.72% in dollar terms over the same period last year.

The trade deficit for April-August, 2013-14 was estimated at US$ 73366.07 million, which was lower than the deficit of US$ 74670.54 million during April-August, 2012-13.