Home / Knowledge / News / Apparel/Garments / TEA seeks relief for textile SMEs
TEA seeks relief for textile SMEs
Jun '15
The Tirupur Exporters Association (TEA), has requested micro, small and medium enterprises minister Giriraj Singh to take up the demand of the entrepreneurs in SME-dominated Tirupur knitwear cluster for raising the threshold limit for MSMEs from Rs10 crore to Rs. 25 crore to avail various subsidies and incentives.

In a memorandum to Singh, TEA also asked the minimum ceiling of investment for readymade garment manufacturers under SME non-corporate sector to be scaled down to Rs 5 crores from Rs 25 crores to boost exports. The present provisions of Sec.32Ac envisages a deduction of 15 per cent of the value of new machinery acquired and installed in the year. This deduction is available only to corporate assesses and there is a ceiling of the minimum investment at Rs.25 crores in purchase and installation of new machinery.

TEA also demanded raising the threshold limit for cash payments towards expenses from an ‘outdated’ Rs 20,000 to Rs 1 lakh in tune with current inflationary trend.

The memorandum also pressed for the extension of the pre and post shipment rupee export packing credit interest subvention at 3 per cent for the garment sector for another two years with retrospective effect from April 1, 2015. The scheme had expired in March 2014.

TEA pointed out that to protect the export sector from increasing credit rates, a separate chapter for export sector is required in RBI Monterey Policy as suggested by Padmanabhan Committee constituted by RBI and the export sector should be delinked with the base rate system being followed by the banks. Till a separate chapter for export is announced, the bank credit rate given to exporters may be fixed at 7 per cent as the interest rates prevailing in competing countries are lower than Indian banks rates.

In the memorandum, TEA also demanded that the government take steps to formalize free trade agreement (FTA) and comprehensive economic partnership agreement (CEPA) with the European Union that would help raise Indian garment exports to Europe from 42 per cent to 55 per cent and break the stranglehold of Bangladesh which enjoys duty free market in the EU. TEA also asked the government to expedite CEPA with Canada which is a promising market for knitwear exporters. (SH)

Fibre2fashion News Desk – India

Must ReadView All

Textiles | On 20th Feb 2017

UK textile & apparel exports up 7.05% in 2016: UKFT

The exports of apparel and textiles from the UK have increased by...

Textiles | On 20th Feb 2017

Himatsingka Seide incorporates subsidiary in Europe

Himatsingka Seide Ltd, one of the largest producers of home textiles...

Courtesy: Green Initiatives

Apparel/Garments | On 20th Feb 2017

Green Initiatives launches Re:Form to end textile waste

Green Initiatives, a non-government institution, has launched...

Interviews View All

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search