Tirupur Exporters’ Association (TEA) has sought the inclusion of the readymade garment sector under the 3 per cent interest subvention scheme.
Hailing various proposals in the Foreign Trade Policy (FTP), TEA President A Sakthivel said the Budget allocation of ₹1,625 crore for interest subvention is a welcome move, but sectors which will benefit under the 3 per cent interest subvention scheme have not been specified appealing for inclusion of the readymade garment sector.
“This women-dominated sector uses 99 per cent domestic content while exporting garments and fulfils the Prime Minister’s Make in India initiative. The sector should, therefore, be considered under the 3 per cent interest subvention scheme,” he said, stressing the importance of including the garment sector.
Lauding the support given to women centric products under MEIS (Merchandise Exports from India Scheme), he suggested extension of the 2 per cent Duty Credit Scrip reward to the garment sector, where women account for more than 70 per cent of the workforce.
Noted economist Ritesh Singh observed that the FTP was smartly designed to focus on less developed sectors than the developed sectors. “It gives the impression that “ease of doing business” would be the important factor, without favouring one sector or other. Services export promotion has been simplified,” he said, adding “this would benefit the SEZs, which were penalised because of the imposition of Minimum Alternate Tax earlier.”