The Apparel Export Promotion Council (AEPC) has outlined its key demands for the upcoming Union Budget 2025, urging the government to adopt strategic policies to enhance the competitiveness of India’s garment export sector.
Shri Sudhir Sekhri, Chairman of AEPC, emphasized that India is at a pivotal moment, with global brands increasingly looking to diversify away from China due to the “China plus one” strategy and the crisis in Bangladesh. He stated, “This is the opportune time for India to capture a larger share of global apparel imports and drive export growth.”
Echoing similar sentiments, Shri Mithileshwar Thakur, Secretary General of AEPC, highlighted the need for India to scale up its production, channel investments, and enhance workforce skills to outpace global competitors.
Key demands include:
- Continuation & Enhancement of Interest Equalization Scheme: AEPC calls for a 5% interest equalization rate to mitigate high capital costs.
- Extension of Concessional Tax Rate: The council recommends a 15% concessional duty rate under Section 115AB of the Income Tax Act for new garment manufacturing units.
- Removal of Sec 43B(H) of IT Act: AEPC seeks exemption for exporters from this section, which imposes tax liabilities for late payments to MSMEs.
- Simplification of Import Procedures: AEPC urges the government to simplify the process for importing trims and embellishments and allow a 10% wastage under the IGCR scheme.
- Liberalization of E-commerce Export Procedures: The council advocates for increased consignment caps and extended export realization periods for e-commerce exports.
- Reduction of Customs Duty on Garments Machinery: AEPC requests zero customs duty on garments machinery to enhance efficiency and global competitiveness.
- Green Transformation Scheme: To support sustainable manufacturing, AEPC proposes long-term soft loans for importing green machinery and modernizing factories to meet ESG compliance.
The AEPC calls on the Union Budget to support the apparel industry’s growth trajectory, leveraging the growing global demand for Indian exports.
