Positive measures such as 3 per cent interest equalisation scheme for five years, extension of 2 per cent reward under MEIS for exports across the globe and announcement of amended Technology Upgradation Fund scheme for five years would go a long way in strengthening the growth of the garment sector and exports, said A Sakthivel, President, Tirupur Exporters’ Association.
In a memorandum to Rashmi Verma, Secretary, Ministry of Textiles, the TEA President, while highlighting the potential of the knitwear hub of Tirupur said the exports touched a high of ₹23,050 crore in 2015-16 from ₹21000 crore the earlier fiscal.
“Garment export from Tirupur alone was a little over 20 per cent of the total garment exports from the country,” he said.
However, to boost exports from the region, the association has appealed to the ministry for inclusion of additional speciality fabrics for import under export performance certificate, for expediting FTA (free trade agreement) with European Union, Comprehensive Economic Partnership Agreement (CEPA) with Canada, Comprehensive Economic Cooperation Agreement (CECA) with Australia and more.
The association is confident that with the signing of FTA with the EU, CECA with Australia and CEPA with Canada, exports will increase 30 per cent from the existing levels, notwithstanding the 10 per cent increase in exports to the rest of countries.