India Garment Exporters Hope To Enjoy Preferential Treatment.

India Ready-made clothes The industry has asked its government to extend the preferential treatment to the exporters of garments, hoping that the demand for overseas buyers will stimulate the sale of cotton and yarns in India. The Apparel Export Promotion Council (AEPC) hopes to re activate the "link market key product mechanism" (the Market Linked Focus Product) to compensate for the cancellation of the "Customs rights and obligations certificate", which will be abolished at the end of September. The DEPB system has been abolished and applied to the US and EU markets.

Under the MLFPS system, exporters can earn 2% exports. Amount of money Now they hope to increase their incentive to 7.5% from October 1st. It was raised last month after the India government decided to resume its tax incentives for cotton and cotton exports. The government of India imported taxes to exporters, 5.6% of cotton and 7.67% of cotton yarn. They went back to October 1st (April 1st) and came into effect in April 1st this year.

AEPC chairman Premal Udani wrote to Anand Sharma, Minister of India's commercial industry and textile industry, that these concessions will give the manufacturers and exporters a great incentive to basic industrial materials. The canal also indicates that the demand for cotton and the price behind the price have not yet been fully understood. This is because the processing industry is facing serious challenges and the tight demand of terminal consumers.

Few countries can follow the total output / acre of cotton or cotton yarn. India Competition. It is a pity that this regional advantage is not helpful to the added value industry of garments and accessories, because the garment industry must compete with international buyers for India. Therefore, although India is the top three countries in cotton / cotton yarn production, its apparel industry accounts for less than 2.5% of the global garment market.

Udani thinks clothes are made. Exit An increase of $1 billion requires additional 450 million meters of cloth and more than 75 thousand kilograms of yarn. Incentives for garment products will automatically create demand for the entire value chain. The canal said it needed government support in view of the two economic downturn and worries about overseas markets.