Home / Knowledge / News / Textiles / Special advance authorisation scheme to benefit exporters
Special advance authorisation scheme to benefit exporters
10
Sep '16
The special advance authorisation scheme announced by the Centre last month will help garment exporters to compete better with counties like Bangladesh and Vietnam. The scheme allows duty-free import of speciality man-made fabric used as inputs for exports, especially high-end garments, thereby reducing the gap between Indian exporters and their competitors.

Currently, apparel exporters from India pay around five per cent import duty while exporting to the EU, compared to zero duty for exporters from Bangladesh. The new scheme will add up to an additional duty drawback reimbursement of 3.2 per cent to 4.7 per cent, which will help immensely in increasing competitive edge of Indian exporters, according to the Apparel Export Promotion Council (AEPC).

“India has been losing to competition from smaller nations like Bangladesh and Vietnam because of higher labour cost, absence of cluster manufacturing and inability to attract women workforce to reduce labour costs. Banking on trade agreements and low manufacturing overheads, these countries have started to pose a serious threat, especially in the EU and the US,” AEPC chairman Ashok G Rajani told Business Line.

Bangladesh is currently ahead of India in terms of value of clothing exports. In 2015-16, its readymade garment exports were valued at $28 billion, while India's exports stood at $17.1 billion.

The scheme, however, is not likely to negatively impact the domestic industry as the duty-free import is allowed only of speciality man-made fabric and not all man-made fabric. (RKS)

Fibre2Fashion News Desk – India

Must ReadView All

Textiles | On 29th May 2017

Special package creates 7,50,000 jobs in garment sector

The special garment package of Rs 6,000 crore that was introduced by...

Md Siddiqur Rahman, president, BGMEA, addressing a press conference with other dignitaries. Courtesy: BGMEA

Apparel/Garments | On 29th May 2017

BGMEA asks govt for 5% incentive for 2 years in Budget

The Bangladesh Garment Manufacturers and Exporters Association...

Textiles | On 29th May 2017

Tintex, Bruckner bring new effects to knitted fabric

The textile company Tintex has joined hands with the system supplier...

Interviews View All

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Mohammad Hassan
Biax Fiberfilm

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Pranav Mishra
Huemn

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

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search