The Indian apparel industry stands as a cornerstone of the nation’s economy, contributing significantly to employment and export revenues. To bolster this sector, the government has introduced various policies, and the Apparel Export Promotion Council (AEPC) plays a pivotal role in aligning with these initiatives to support exporters. This article delves into how AEPC synergizes with government schemes like the Production Linked Incentive (PLI) scheme, the Rebate of State and Central Taxes and Levies (RoSCTL), and duty drawback benefits to empower apparel exporters.

Production Linked Incentive (PLI) Scheme

The PLI scheme aims to enhance India’s manufacturing capabilities and boost exports by providing financial incentives to companies based on their incremental sales. In the textile sector, the scheme focuses on promoting the production of man-made fiber (MMF) apparel, MMF fabrics, and technical textiles.

AEPC actively facilitates exporters in leveraging the PLI scheme by providing comprehensive information and assistance. The council organizes workshops and seminars to educate members about the scheme’s benefits and application procedures. By doing so, AEPC ensures that exporters are well-equipped to capitalize on the incentives offered, thereby enhancing their competitiveness in the global market.

Rebate of State and Central Taxes and Levies (RoSCTL)

The RoSCTL scheme is designed to refund the embedded taxes and levies that are not refunded through other mechanisms, ensuring that exports are zero-rated. This initiative is crucial for maintaining the cost-competitiveness of Indian apparel in international markets.

In February 2024, the government extended the RoSCTL scheme for apparel, garments, and made-ups until March 31, 2026. This extension provides a stable policy environment, enabling exporters to plan their long-term strategies effectively. AEPC has been instrumental in advocating for such extensions and offers guidance to exporters on availing benefits under the scheme.

Duty Drawback Benefits

The Duty Drawback Scheme allows exporters to claim a refund of duties or taxes paid on inputs used in the manufacture of exported products. This refund mechanism reduces the overall production cost, making Indian apparel more competitive globally.

AEPC assists exporters in navigating the complexities of the Duty Drawback Scheme. The council provides up-to-date information on applicable rates and procedural requirements, ensuring that exporters can efficiently claim refunds. For instance, in October 2023, the Ministry of Finance revised the duty drawback rates, and AEPC promptly disseminated this information to its members, highlighting the council’s role in keeping exporters informed.

AEPC’s Comprehensive Support

Beyond aligning with specific government schemes, AEPC offers a broad spectrum of services to apparel exporters:

• Market Access Initiative: The council secures subsidies for organizing international apparel fairs and buyer-seller meets, reducing participation costs for exporters and facilitating global market entry.
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• Trade Facilitation: AEPC actively addresses issues faced by exporters with customs, DGFT, and other related organizations, ensuring smooth operations and timely resolution of challenges.
• Risk Management: The council has established facilitation desks to assist exporters tagged as ‘risky,’ working closely with authorities to expedite the resolution process and ensure the release of pending refunds.
• Technology Upgradation: AEPC compiles and addresses pending cases under the Amended Technology Upgradation Fund Scheme (ATUFS), liaising with the Textile Commissioner’s office and the Ministry of Textiles to resolve technical and documentation issues.

Partnering with Altus Exports

While government policies and AEPC provide substantial support, partnering with experienced export facilitators like Altus Exports can further enhance an apparel manufacturer’s global reach.

Altus Exports specializes in connecting Indian manufacturers with international buyers, offering services such as:

• Buyer Identification: Leveraging extensive networks and market intelligence to find suitable buyers for your products.
• Market Intelligence: Providing insights into global market trends, helping manufacturers make informed decisions.
• Logistical Support: Assisting with the complexities of international shipping, ensuring timely and efficient delivery.

By collaborating with Altus Exports, manufacturers can navigate the complexities of international trade more effectively, ensuring their products reach global markets efficiently.

For more information on partnering with Altus Exports, visit:

Conclusion

The synergy between government policies and AEPC’s initiatives provides a robust framework for apparel exporters in India. By understanding and leveraging schemes like the PLI, RoSCTL, and Duty Drawback, and by partnering with experienced export facilitators like Altus Exports, manufacturers can enhance their competitiveness and expand their global footprint.