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

May 31 deadline for registration of chemicals under REACH

Textiles | On 23rd May 2018

May 31 deadline for registration of chemicals under REACH

May 31 is the final deadline for companies to register all chemicals...

US cotton production projected to decline in 2018: USDA

Textiles | On 23rd May 2018

US cotton production projected to decline in 2018: USDA

US cotton production is forecast at 19.5 million bales, nearly 7 per...

Pakistan's textile exports up 8.13% in July-April FY18

Textiles | On 23rd May 2018

Pakistan's textile exports up 8.13% in July-April FY18

The value of textile and garment exports from Pakistan increased by...

Interviews View All

Top executives
Textile industry

Union budget 2018-19 will have positive impact on apparel industry

Marazban F Velati
Sutlej Textiles & Industries limited

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

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Urs Stalder
Sanitized AG

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

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

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

Leave your Comments


May 2018

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

news category


Related Categories:

Advanced Search