The Indian apparel industry has called on the Government to introduce a series of policy reforms aimed at improving export competitiveness, supporting sustainability, and accelerating sector growth.
The recommendations were presented by Dr. A. Sakthivel, Chairman of the Apparel Export Promotion Council (AEPC), during the Board of Trade (BoT) meeting chaired by Commerce and Industry Minister Piyush Goyal in New Delhi.
Key Policy Recommendations
AEPC has proposed increasing the Interest Subvention Scheme from 2.75% to 5%, extending its coverage to all exporters and removing the existing annual cap.
The Council also recommended relaxing the Average Export Obligation under the Export Promotion Capital Goods (EPCG) Scheme for exporters affected by market disruptions, particularly those dependent on the US market.
To provide greater policy certainty, AEPC urged the Government to extend the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for at least three more years. It also requested that the benefits be made available to exporters operating under the Advance Authorisation, Export Oriented Unit (EOU) and Special Economic Zone (SEZ) schemes.
Focus on Sustainability and Ease of Doing Business
To support the industry’s sustainability goals, AEPC proposed the creation of a Green Transformation Fund offering long-term soft loans for investments in environmental compliance and ESG initiatives.
The Council also suggested introducing a Special Scheme for the Apparel Sector (SSAS) based on self-ratified input-output norms to simplify duty-free fabric imports, reduce compliance requirements and improve ease of doing business.
Additional recommendations included enhanced government support for worker hostels and affordable housing in major apparel manufacturing clusters, faster implementation of PM MITRA Parks with a dedicated focus on man-made fibre (MMF) production, and making the Registration-cum-Membership Certificate (RCMC) mandatory for availing export promotion schemes.
Dr. Sakthivel stated that wider market access through Free Trade Agreements (FTAs), combined with timely policy support, would help the apparel industry contribute significantly to India’s export growth.
TEA Seeks Support for Tiruppur Knitwear Sector
Representatives of the Tiruppur Exporters’ Association (TEA), including President K. M. Subramanian, also attended the Board of Trade meeting.
Separately, TEA has urged the Tamil Nadu Government to establish a Knitwear Board, a Textile Innovation Centre, and a Centre of Excellence for Activewear and Athleisure Wear in Tiruppur to strengthen the region’s knitwear ecosystem.
During a meeting with T.N. Venkatesh, Principal Secretary, Handlooms, Handicrafts, Textiles and Khadi Department, the association also sought dormitory hostels and affordable housing for migrant workers, along with a 25% capital subsidy for standalone exporting units investing in automated CAD fabric cutting machines.
According to TEA, the current 50% subsidy is limited to units operating under the Hybrid Hub-and-Spoke Model, leaving many MSME exporters ineligible.
T.N. Venkatesh said the proposals for the Knitwear Board, Textile Innovation Centre and Centre of Excellence would be considered for inclusion in the upcoming Tamil Nadu Budget.
